According to classical economists, the increase in unemployment in recessions is caused by
A) slack aggregate demand.
B) the failure of wages to adjust to restore equilibrium in the labor market.
C) the power of labor unions, which prevent firms from cutting wages.
D) a mismatch of workers and jobs.
D
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Free riding is primarily a characteristic of which type of good?
A) a pure private good B) a pure public good C) a club good D) a common pool resource
If a firm is using optimal input proportions, it is minimizing its costs.
Answer the following statement true (T) or false (F)
Describe the effects of the Smoot-Hawley tariff imposed by the United States in 1930
What will be an ideal response?
RBC theory leads to ________ government macro-stabilization policy, due to the theory's assumption of ________
A) a rationale for, slow wage and price adjustment B) a rationale for, continuous market-clearing C) a rejection of, slow wage and price adjustment D) a rejection of, continuous market-clearing