Self correcting mechanism reveals that
a. real wages will increase if there is an increase in price.
b. nominal wages will fall if there is inflationary gap.
c. nominal wages will increase if there is recessionary gap.
d. in the long run economy will be in equilibrium at potential GDP.
d
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_______ unemployment rises and falls with the business cycle.
a. Frictional b. Systematic c. Cyclical d. Temporary
Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower
A) unnatural unemployment.
B) seasonal unemployment.
C) cyclical unemployment.
D) frictional unemployment.
E) structural unemployment.
The production possibility frontier illustrates:
A. that people usually exploit opportunities to make themselves better off. B. the inverse relation between price and quantity of a particular good. C. that, when markets don't achieve efficiency, government intervention can improve society's welfare. D. the maximum quantity of one good that can be produced given the quantity of the other good produced.
Recall the Application about price discrimination using refillable soda bottles to answer the following question(s).Recall the Application. Price discrimination using recyclable soda bottles will work only if:
A. some consumers will buy the soda only if given a discount. B. all consumers are willing to buy the soda at the higher price. C. all consumers will not buy the soda at the lower price. D. the seller can only sell the refillable bottles for more than twice the cost of producing it.