A. wages and prices are sticky
B. wages and prices are flexible
C. the economy may operate below full capacity
D. the economy is always at full capacity
E. A and C
F. B and D
A. minimize negotiation costs
B. minimize unemployment effects
C. guarantee that only the least productive workers will be laid off.
D. will equitable spread the layoffs among junior and senior workers
A. an implicit or social contract
B. a relative-wage contract
C. employment at will
D. an explicit contract
A. New classical economists
B. Keynesian.
C. Monetarists
D. Marxists.
A. lower unemployment rate will tend to lower the inflation rate
B. lower unemployment rate will tend to raise the inflation rate
C. raise inflation rate will tend to raise the unemployment rate
D. lower inflation rate will tend to raise the unemployment rate
A. the price level and the unemployment rate
B. the inflation rate and the unemployment rate
C. the level of aggregate output and the price level
D. the inflation rate and the level of aggregate demand
A. New classical economists
B. Keynesian.
C. Marxists
D. Monetarists
A. only in the short run, and not without inflation
B. only in the long run and not without inflation
C. only is the short run and only if the price level is constant
D. only in the long run and only if the price level is constant
A. frictional unemployment and seasonal unemployment
B. frictional unemployment and cyclical unemployment
C. frictional unemployment and structural unemployment
D. cyclical unemployment and structural unemployment
A. neither monetary nor fiscal policy will have an effect on output and employment
B. monetary but not fiscal policy will have an effect on output and employment
C. Fiscal, but not monetary policy will have an effect on output and employment
D. both monetary and fiscal policy will have an effect on output and employment