Refer to the figure above. If there is downward wage rigidity in the market, what is the wage rate at which wages will be held, everything else remaining unchanged?
A) $25 B) $10 C) $30 D) $15
A
You might also like to view...
Which of the following is not an example of a noncooperative oligopoly model?
A) The kinked demand curve model. B) The model of limit pricing. C) The prisoner's dilemma game. D) The cartel model.
Which of the following most accurately describes the long-run period? a. The long run is a period of time in which a firm is unable to vary some of its factors of production
b. In the long run, the firm is able to expand output by utilizing additional workers and raw materials, but not physical capital. c. The long run is of sufficient length to allow a firm to alter its plant capacity and all other factors of production. d. The long run is of sufficient length to allow a firm to transform economic losses into economic profits.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Suppose that P × Y is $5,000 million a year and the quantity of money is $500 million. Then the velocity of circulation is
A) 50. B) 10. C) 500. D) 20. E) 2,500,000.