Which of the following statements is correct with respect to the debate between the Keynesians and new classical economists?
a. Each side criticized monetarism
b. The key source of disagreement centered on how people form their expectations.
c. Both models believed that recessions were characterized by falling aggregate demand.
d. Both believed that unanticipated changes in monetary policy could influence output.
e. all of the above.
E
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Much of the credit for prevention of a financial market meltdown after "Black Monday" (October 19, 1987 ) must be given to the Federal Reserve System and then-chairman
A) Paul Volcker. B) Alan Blinder. C) Arthur Burns. D) Alan Greenspan.
In some markets plumbers have a choice of joining unions or working as nonunion plumbers. The total short-run supply of plumbers is perfectly inelastic at 500 workers per day
The demands for nonunionized and unionized plumbers, respectively, are: WNU = 30 - 0.04L WU = 30 - 0.10L. The wage rate is W in $/hr. and the number of workers per day is L. a. Determine the total demand for plumbers. b. Calculate the total market wage rate of plumbers assuming that unionized and nonunionized plumbers get the same wage rate. c. If the unionized workers succeeded in getting their wage increased to $20.00 per hour, how many unionized workers would lose their jobs? d. If the unionized workers in (c) who lost their jobs take jobs as non-unionized workers, how much and in what direction would non-unionized wages change?
Game theory is best applied to the analysis of:
A. oligopoly. B. monopoly. C. perfect competition. D. All of the statements associated with this question are correct.
A basic distinction between the long run and the short run is that
A) if a firm produces no output in the long run, it still incurs a cost. B) the opportunity costs of production are lower in the short run than in the long run. C) in the long run, some inputs are fixed, while in the short run, all inputs are variable. D) in the short run, complete adjustment of all inputs is impossible, while in the long run all inputs can be adjusted.