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.
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
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