The unemployment rate may:
A. understate the effect of a recession on employment because some leave the labor force.
B. understate the effect of a recession on employment because many enter the labor force.
C. overstate the effect of a recession on employment because some leave the labor force.
D. overstate the effect of a recession on employment because many enter the labor force.
A. understate the effect of a recession on employment because some leave the labor force.
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Comparing the AS-AD model and the Phillips curve, we see that
A) they both are graphed as a relationship between the rate of inflation and the unemployment rate. B) the AS-AD model uses the price level and the Phillips curve uses the rate of inflation. C) the AS-AD model is graphed as a relationship between the inflation rate and the rate of real GDP. D) the AS-AD model uses the price level and the Phillips curve uses real GDP. E) the Phillips curve is graphed as a relationship between the price level and the unemployment rate.
In the short run, a firm operating as a monopolistic competitor will produce to the point at which
A) MR = ATC. B) MC = ATC. C) P = MC. D) MR = MC.
Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price capital is $2, then in order to minimize costs the firms should use:
a. More capital and less labor B. More labor and less capital c. Three times more capital than labor d. None of the statements associated with this question are correct
The following table provides information about production at the XYZ-TV Company.Number of WorkersTVs ProducedMarginal ProductValue of Marginal Product00------13535$35,00026833$33,00039931$31,000412829$29,000515527$27,000 How many workers will XYZ-TV Company hire if the going wage for TV production workers is $60,000?
A. 4 B. More than 5 C. 0 D. 5