Regarding unemployment, the classical model implies that
A. unemployment always exists.
B. voluntary unemployment is zero, but involuntary unemployment often is fairly high.
C. unemployment cannot exist.
D. only voluntary unemployment exists.
Answer: D
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Unlike demand-pull inflation, cost-push inflation:
A. drives up the price level. B. increases nominal income. C. increases real income. D. is self-limiting.
The International Monetary Fund has classified 192 economies, comparing the:
a. value of their currencies. b. percentage of women in the workforce. c. effectiveness of governance and institutions. d. flexibility of their exchange rate regimes.
Refer to the information provided in Figure 6.7 below to answer the question(s) that follow.
Figure 6.7Refer to Figure 6.7. Along budget constraint AB, the price of good X is $25 and the price of good Y is $18. If the price of Y decreases to $14, the budget constraint will
A. shift in parallel to AB. B. pivot out at point A. C. pivot in at point A. D. pivot in at point B.
Product variety and innovation are ________ associated with the oligopoly model.
A. never B. only C. benefits D. rarely