If a firm decides to ignore the reactions of its rivals to its policies, the appropriate model to analyze its behavior is
a. game theory.
b. perfect competition.
c. monopoly.
d. cartels.
c
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Refer to the above figure. At the initial long-run equilibrium, the price level is ________, and the price level will be ________
A) 20; 40 B) 20; 45 C) 40; 45 D) 20; 20
Frictional unemployment comes about because of
A) friction between labor and management. B) a mismatch between skills and available jobs. C) normal labor market turnover. D) a general economic slowdown.
In the figure above, D0 is the demand for labor curve. Imposing a minimum wage of $6 per hour will initially
A) increase employment from 20 to 40 million hours per year. B) increase employment from 30 to 40 million hours per year. C) decrease employment from 40 to 20 million hours per year. D) decrease employment from 30 to 20 million hours per year.
Suppose that the economy begins at a long-run equilibrium. Which of the following raises the price level and decrease real GDP in the short run?
A) a decrease in the quantity of money B) an increase in the price of oil that decreases aggregate supply C) an increase in the stock of capital that increases aggregate supply D) an increase in government expenditures