The CEO of Banner Enterprises adopts a new welfare policy for all employees. The policy states that the company will prevent wages from falling when there is an economic downturn, but the employees should not expect huge salary increases when the economy is strong again. This is an example of _____
a. the efficiency wage theory
b. an implicit contract
c. a seasonal contract
d. an adverse selection
b
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Holding other factors constant, building an on-line job database to help workers find jobs would likely
A) reduce cyclical unemployment and the natural rate of unemployment. B) reduce structural unemployment and the natural rate of unemployment. C) reduce frictional unemployment and the natural rate of unemployment. D) increase the natural rate of unemployment.
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The GDP Price Index remains the same and reserve-related (central bank) transactions become more positive (or less negative). b. The GDP Price Index falls and reserve-related (central bank) transactions remain the same. c. The GDP Price Index and reserve-related (central bank) transactions remain the same. d. The GDP Price Index rises and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The evidence from hyperinflations indicates that money growth and inflation
a. are positively related, which is consistent with the quantity theory of money. b. are positively related, which is not consistent with the quantity theory of money. c. are not related in a discernible fashion, which is consistent with the quantity theory of money. d. are not related in a discernible fashion, which is not consistent with the quantity theory of money.
The long-run supply curve in a competitive market is upward-sloping
Indicate whether the statement is true or false