The demand for labor is downward-sloping because of
A. Falling MC.
B. Rising P.
C. Rising MPP.
D. Diminishing returns to labor.
Answer: D
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If the rate of inflation in the economy is steady at 5 percent per year, how does the short-run Phillips curve predict that the unemployment rate will be changing, if at all? Does your answer change if inflation in the economy is 0 percent?
Illustrate your answer with a Phillips curve.
On the graph above, the labeled point at which investment — planned plus unplanned — is highest is point ________
A) A B) B C) G D) H E) not inferable from the information given
A market is NOT contestable if:
A. existing firms cannot respond quickly to entry by lowering their price. B. there are sunk costs. C. consumers respond quickly to a price change. D. all producers have access to the same technology.
An effective price floor will:
A. force some firms in this industry to go out of business. B. result in a product surplus. C. result in a product shortage. D. clear the market.