Consider a nation in which most workers are unionized. If all the nation's unions band together and succeed in boosting wages established by long-term labor contracts, then
A. there is a leftward shift in just LRAS.
B. there is a rightward shift in just SRAS.
C. there is a rightward movement along the SRAS curve.
D. there is a leftward shift in both LRAS and SRAS.
Answer: D
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In the United States, estimates of the natural rate of unemployment in recent years have varied between
A) 0 percent and 2 percent. B) 0 percent and 4 percent. C) 5 percent and 6.5 percent. D) 2 percent and 4 percent.
Intertemporal decisions are
a. decisions in one period of time. b. decisions over time. c. decisions made without thinking about time. d. decisions involving infinity.
Backward linkages are the demands created by new supply capacities
Indicate whether the statement is true or false
From the graph showing the Phillips curve from 2006 to 2016, we can see that the 2008 financial crisis caused ______.
a. high inflation rates and low unemployment rates
b. low inflation rates and high unemployment rates
c. high inflation and unemployment rates
d. low inflation and unemployment rates