What is the effect of an increase in unemployment benefits on the unemployment rate?
What will be an ideal response?
An increase in unemployment benefits decreases the overall costs of being unemployed. As a result it increases the length of time unemployed workers search for a new job and hence increases the unemployment rate.
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A profit-maximizing monopolistically competitive firm produces and sells an allocatively efficient quantity of output
Indicate whether the statement is true or false
The interest rate, as it appears on paper in a contract, is the:
A. nominal interest rate. B. short-term interest rate. C. real interest rate. D. long-term interest rate.
Command-and-control policies lead to higher prices for consumers than pollution taxes do.
Answer the following statement true (T) or false (F)
The Peruvian economy can be characterized by Equation 24.4.EQUATION 24.4:C = 400 + 0.6YdTaxes = 600Equilibrium Output = $4,000Refer to Equation 24.4. At equilibrium, leakages in Peru equal
A. 2,040. B. 1,560. C. 1,440. D. 960.