In the short run when the marginal product of labor ________, the marginal cost of an additional unit of output _________.
A) rises; rises
B) falls; falls
C) rises; falls
D) falls; doesn’t change
C) rises; falls
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If the government intervenes in a labor dispute and requires settlement through binding arbitration, what takes place?
a. A neutral third party makes a decision that both parties must accept. b. A neutral third party makes a decision that both parties may reject. c. One party sues the other in court. d. The two parties negotiate an agreement without assistance and both must accept it. e. The two parties negotiate an agreement with assistance from their attorneys and both must accept it.
Normally, a firm's borrowing cost is the expected real interest rate, which takes expected inflation into account. With price stickiness, however, the firm will consider only:
a. expected inflation. b. expected wages. c. the nominal rate of interest. d. the expected appreciation of the asset.
Increases in unemployment compensation:
What will be an ideal response?
If the MPC = 0.9, the multiplier would be:
A. 0.1. B. 2. C. 9. D. 10.