Wages in excess of their equilibrium level help explain
a. structural unemployment but not the natural rate of unemployment.
b. the natural rate of unemployment but not structural unemployment.
c. both structural unemployment and the natural rate of unemployment.
d. neither structural unemployment nor the natural rate of unemployment.
c
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If the primary goal in implementing a tax is to maximize efficiency and minimize deadweight loss, the government should impose a(n):
A. income tax. B. lump sum tax. C. sin tax. D. proportional tax.
Keynesian economists generally agree that unemployment is more costly than inflation
a. True b. False Indicate whether the statement is true or false
Which of the following scenarios are illustrated in the give PPC? (check all that apply)
a. An economy in full employment along the curve b. Unemployment at point W c. Output combination C is better than the output combination B d. Attainable combinations of both goods below the curve
If opportunity costs are constant, then
A. factors of production must not be fully employed. B. the production possibilities curve is a negatively sloped straight line. C. the production possibilities curve bows outward. D. the production possibilities curve does not exist.