According to Okun's law, each extra percentage point of ________ unemployment is associated with a ________ widening of a negative output gap, measured in relation to potential output.
A. frictional; 0.5 percent
B. cyclical; 2 percent
C. frictional; 2 percent
D. cyclical; 0.5 percent
Answer: B
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Charging a higher price for a motel room to customers with dogs or cats than to customers with no pets is most likely an example of
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) actual cost differences.
In 1968, economist Milton Friedman published a paper criticizing the Phillips curve on the grounds that
a. it seemed to work for wages but not for inflation. b. monetary policy was ineffective in combating inflation. c. the Phillips curve did not apply in the long run. d. Phillips had made errors in collecting his data.
Explain how, according to the theory of PSST (patterns of specialization and sustainable trade), economic activity can decline in the face of unchanged aggregate demand. Give a hypothetical example to help support your answer
Refer to the given data. Assume now that the prices of a and b are $15 and $20 respectively. To maximize profits, what combination of a and b should the employer hire?
Answer the question on the basis of the following marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit.
A. 3 of a and 5 of b.
B. 5 of a and 7 of b.
C. 7 of a and 7 of b.
D. 6 of a and 2 of b.