Some economists believe that when workers and firms expect a recessionary monetary policy, _____.
a. they act so as to prevent the price level from increasing
b. their actions lead to a further increase in output
c. they are likely to negotiate for relatively lower wages
d. the monetary authority is forced to cancel its planned recessionary policy
e. both output and employment increase even more than was originally planned
c
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If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the unemployment rate is
A) 6.6 percent. B) 10 percent. C) 9.1 percent. D) 7.1 percent.
Which of the following components of the current account are included in GDP?
A) net exports B) net foreign investment income C) net transfer payments sent to foreigners D) all of the above
Refer to Scenario 18.1. What should the fishermen do if they know the factory will maximize profits and no negotiation is possible?
A) Install a treatment plant. B) Do not install a treatment plant. C) It makes no difference if the fishermen do or do not install a treatment plant. D) Install a filter. E) Exit the industry.
One major problem with concentration ratios is that they fail to take into account:
A. The localized market for products B. Excess capacity in production C. Price leadership D. Mutual interdependence