An increase in the duration of unemployment should be linked to a decrease in flows in and out of unemployment, if one is to keep unemployment constant
a. true
b. false
True.
If the duration of unemployment is increasing, it can only be due to people entering unemployment, but not leaving as quickly as they used to (a decreased flow out of unemployment into either employment or out-of-labor-force). Holding every other flow constant, this would immediately increase unemployment. Therefore, if one is to keep unemployment constant, the lower flow out of employment must be accompanied be lower flow into employment.
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What can be determined by looking at this production possibilities curve?
a. Studying longer will not improve the grade in economics.
b. It is not possible to get an A in both classes.
c. The highest attainable history grade is a B.
d. It takes less studying to get an A in history than in economics.
Suppose the global market for personal computers is monopolistically competitive. If a country engages in a two-way trade in personal computers, such trade is usually based on
A. product differentiation. B. constant returns to scale. C. external scale economies. D. comparative advantage.
Short-run movements in nominal exchange rates are primarily due to:
A. inflation differentials. B. changing prices of goods and services in the countries involved. C. changing expected rates of return on domestic and foreign assets. D. changes in exports.
Which of the following is NOT a feature of monopolistic competition?
A) significant numbers of sellers in a highly competitive market B) differentiated products C) sales promotion and advertising D) inability of firms to enter or exit the market