The natural rate of unemployment worsens if:
a. Actually, the natural rate cannot worsen. That's why it's called "natural."
b. Labor force mobility worsens.
c. Capital markets become more competitive.
d. A nation's resource endowments expand.
e. Real wages become more flexible.
.B
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Answer the following statement(s) true (T) or false (F)
1. In both the short-run and the long-run, a monopoly is guaranteed to earn positive profits. 2. An excise tax will increase the deadweight loss due to monopoly, but an excise subsidy can reduce the deadweight loss. 3. An unregulated, profit maximizing monopoly will never set a price where demand is inelastic. 4. The large increase in the price of oil and in the total revenues and profits of the US oil industry in the 1990's are evidence that it was exercising monopoly power. 5. A monopoly's supply curve is the portion of its marginal cost curve that lies above its average variable cost curve.
In the short-run, if the Federal Reserve decreases interest rates, then consumption and investment ________, aggregate expenditure ________, and short-run equilibrium output ________.
A. increase; increases; increases B. increase; increases decreases C. decrease; decreases; decreases D. increase; decreases; decreases
The economy is experiencing a recession combined with inflation. The self-correction school would say the proper response is to_____.
A. increase government spending B. increase regulations on new research projects C. do nothing D. increase the money supply
A dominant strategy ________
A) always results in equal payoffs to all the players in a game B) always results in zero payoff to the opponent C) results in a higher payoff irrespective of the strategy chosen by the other player D) always results in a lower payoff irrespective of the strategy chosen by the other player