In the long run, an economy will produce its potential output if:
a. workers mistakenly believe that nominal wages equal real wages
b. the expectations of workers and firms are the same in the long and short run.
c. wages and prices are sufficiently flexible.
d. the price level is high.
e. the price level is low.
c
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Uniform standards
a. are not relevant to mobile source controls b. refer to standards that remain the same over time c. have been shown to be more costly than a two-tiered standard on motor vehicles d. achieve an allocatively efficient outcome
If a minimum wage is introduced that is above the equilibrium wage rate,
A) the quantity of labor demanded increases. B) job search activity increases. C) the supply of labor increases and the supply of labor curve shifts rightward. D) unemployment decreases because more workers accept jobs at the higher minimum wage rate. E) the quantity of labor supplied decreases because of the increase in unemployment.
The major difference between the balance of payments and the foreign exchange market is that:
a. Actually, there is no difference. All sources of funds in the balance of payments are demands for foreign exchange and all uses of funds in the balance of payments are supplies of foreign exchange. b. Actually, there is no difference. All sources of funds in the balance of payments are supplies of foreign exchange and all uses of funds in the balance of payments are demands of foreign exchange. c. The balance of payments includes many more transactions than are included in the foreign exchange market. d. The foreign exchange market includes many more transactions than are in the balance of payments.
A shortage of hospital beds in a hospital services market will lead to:
a. a decrease in the demand for hospital beds. b. upward pressure on the price of a hospital stay. c. a construction boom to eliminate the shortage. d. an increase in the supply of hospital beds. e. downward pressure on the price of a hospital stay.