Suppose an economy is characterized by the equations below: Price setting: P= (1 + m) (W/
A)Wage setting: W=AP(1 - u)Solve for the natural rate of unemployment if the markup (m) is equal to 4%.
u = 4%
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Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
A perfectly competitive market arises when
A) the market demand is small relative to the output of a firm. B) there are many buyers but few sellers. C) the market demand is very large relative to the output of one seller. D) a firm has control over a unique resource. E) each of the many firms produces a slightly different product.
According to the above figure, the market clearing wage rate is
A) We. B) Wm. C) We - Wm. D) Wm + We.
A television station reports that the price of coffee has increased but the quantity traded in the market has decreased. This situation would be caused by a(n):
A. Increase in demand B. Increase in supply C. Decrease in demand D. Decrease in supply