One part of the explanation for the persistently high rates of unemployment in Western Europe is:
A. labor market rigidities.
B. productivity growth.
C. increases in labor supply.
D. increases in labor demand.
Answer: A
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Refer to Figure 15-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) decrease the inflation rate. B) decrease interest rates. C) not change interest rates. D) increase interest rates.
Which of the following is FALSE about firms organized along functional lines?
a. Workers develop functional expertise b. Workers can easily share information within their division c. They inhibit the exploitation of economies of scale d. None of the above
Recall the Application about the impact Chinese imports have on U.S. labor markets to answer the following question(s).This Application addresses the idea that:
A. imports are only beneficial to a community if they are equally matched by exports from that community. B. imports ultimately have a positive impact on all communities. C. imports have an equal impact on all communities. D. imports have a bigger impact on some communities than on others.
In the above figure, the inflationary gap can correctly be identified as
A. LRAS minus SRAS. B. AD1. C. the difference between 125 and 120. D. the difference between 12.2 trillion and 12 trillion.