Suppose the economy is experiencing a recessionary gap. In the long run, the money wage rate ________, unemployment ________, and the price level ________.

What will be an ideal response?


) falls; falls; falls

Economics

You might also like to view...

What would be an example of a consumption good?

A) Donald Trump purchases furniture for his office. B) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. C) Jake buys an iPhone. D) The local driver's license office purchases a new digital camera and printer. E) Rhianna gets a haircut.

Economics

If a one-year bond is purchased for $700 and the interest rate is 5 percent, what will it pay in one year?

A) $35 B) $665 C) $735 D) $770

Economics

Cyclical unemployment is

A) the total of structural and frictional unemployment. B) created by a recession. C) part of frictional unemployment. D) higher when the economy is expanding. E) always greater than the total of structural and frictional unemployment.

Economics

Which of the following is a case of asymmetric information:

A. The buyer and seller of a used car don’t know how long the car will operate. B. A provider of health insurance does not know whether a specific client is a smoker or not. C. Neither you nor the insurance company has perfect information about whether a flood will occur. D. None of the above are examples of asymmetric information.

Economics