Higher wages mean higher production costs and lower profits at any given selling price.
Answer the following statement true (T) or false (F)
True
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For the past decade, the unemployment rate in Western Europe has been higher than the unemployment rate in the United States
Based on this fact, is the natural unemployment rate larger in Western Europe or in the United States? Why might the natural rates differ between the two areas?
Production efficiency exists when the least cost combination of inputs is used to produce output
a. True b. False
In the 1990's Ireland made unemployment benefits less generous. This change would likely have reduced
a. both structural unemployment and the natural rate of unemployment. b. structural unemployment but not the natural rate of unemployment. c. both frictional unemployment and the natural rate of unemployment. d. frictional unemployment but not the natural rate of unemployment.
The belief by most economists that real and nominal variables are essentially determined separately in the long run is characteristic of the ________ model.
a) aggregate demand b) classical c) Keynesian d) aggregate supply