The natural rate of unemployment is higher in Europe than in the U.S. due to ________
A) the greater relative strength of American unions
B) the greater relative generosity of U.S. unemployment benefits
C) the greater severity of the business cycle in Europe relative to the U.S.
D) stricter European work rules
D
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According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good Y is ________ units of Good X for Chen and ________ units of Good X for Holly
A) 50; 40 B) 25; 10 C) 2; 2/5 D) 1/2; 2 1/2
In which of the following market structures do you find barriers to entry?
A. a monopoly B. a perfectly competitive market C. a monopolistic competition D. Both a monopoly and a perfectly competitive market are correct
For this question, assume that the economy is initially operating at the natural level of output. An increase in consumer confidence will cause
A) a reduction in the real wage in the medium run. B) an increase in the real wage in the medium run. C) no change in the real wage in the medium run. D) ambiguous effects on the real wage in the medium run.
Which of the following would be classified as a negative supply shock?
A. An increase in the legal minimum wage B. A decrease in the price of oil C. An increase in demand for exports D. An increase in government purchases