A macroeconomic model obeys the "natural rate hypothesis" by incorporating

A) the assumption of nominal wage stickiness.
B) a vertical LAS curve.
C) imperfect information.
D) a vertical AD curve.


B

Economics

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White-collar jobs guarantee financial security

Indicate whether the statement is true or false

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The opportunity cost of capital is

A) the rate of return realized on an investment. B) the rate of return that could be earned by the owner's capital were it used elsewhere. C) the rate used to calculate a firm's tax liability. D) the rate of interest the government uses to calculate legal business tax penalties.

Economics

An economy is producing efficiently when all factors of production are used in their most productive capacity

Indicate whether the statement is true or false

Economics

If a good that generates negative externalities were priced to take these negative externalities into account, then its:

A. Price would decrease and its output would increase B. Output would increase but its price would remain constant C. Price would increase and its output would decrease D. Price would increase but its output would remain constant

Economics