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Question
If a drop in aggregate demand causes a recession, then over this range of real output the aggregate supply curve is:
a. vertical
b. downward sloping
c. upward sloping
d. inelastic
Answer
This answer is hidden. It contains 1 characters.
Related questions
Q:
Implicit contracts suggest that:
a. firms may lay off workers in return for granting then an insurance policy against wage reductions
b. firms may pay workers a lower wage in return for granting them an insurance policy against layoff
c. firms have a higher wage bill in recessions than during periods of economic expansion
d. firms have an incentive to contract with workers to pay them the going market wage
Q:
Another name for demand-deficient unemployment is: a. cyclical unemployment b. recurring unemployment c. structural unemployment d. contractionary unemployment
Q:
Which one of the following is a true statement?
a. Higher levels of education are associated with higher levels of structural unemployment
b. During a recession, cyclical unemployment rises but structural unemployment falls
c. Historically, technological change has created more jobs than it has made obsolete
d. During a recession, most unemployment is structural unemployment
Q:
Which of the following is a form of frictional unemployment? a. Wait unemployment b. Structural unemployment c. Cyclical unemployment d. Displaced workers
Q:
In the short run, the aggregate quantity supplied may exceed the full-employment level of output. This is because as the price level rises:
a. firms mistake lower real wage rates for lower money wage rates and therefore increase employment beyond the profit-maximizing level
b. firms mistake lower money wage rates for lower real wage rates and therefore increase employment beyond the profit-maximizing level
c. workers respond to falling real wage rates by working more hours, since the income effect outweighs the substitution effect
d. unemployed workers mistake higher nominal wage rates for higher real wage rates, causing employment and output to rise as they accept job offers more quickly
Q:
Compared to the 1960s, the natural rate of unemployment in the 1970s and 1980s was:
a. higher, because of changes in the composition of the labor force
b. higher, because of the failure of public policies to reduce it
c. lower, because of changes in the composition of the labor force
d. lower, because of the success of public policies to reduce it
Q:
The unemployment rate at which there is neither excess demand nor excess supply in the aggregate labor market:
a. must be 0%
b. is called the natural rate of unemployment
c. will lead to higher inflation if pursued as a policy goal
d. corresponds to the rate we would observe if inflation were lower than had been expected
Q:
Since 1960, the employment-population ratio has:
a. trended upward but the unemployment rate has been highly variable
b. been highly variable but the unemployment rate has trended upward
c. trended downward but the unemployment rate has trended upward
d. remained fairly constant but the unemployment rate has trended downward
Q:
To determine the unemployment rate, each month the government:
a. collects data from a survey of about 60,000 households nationwide
b. collects data from a survey of about 500,000 firms nationwide
c. records the number of people receiving unemployment compensation
d. conducts a full count of the number of unemployed in each state
Q:
(World of Work 17-1) Empirical studies of the productivity of public capital indicate:
a. a consensus that public capital is approximately half as productive as private capital
b. a consensus that public capital is approximately twice as productive as private capital
c. high productivity when using national data, but low productivity using state and regional data
d. high productivity when using state and regional data, but low productivity using national data
Q:
Suppose productivity increases by 5% in industry X and 2% in industry Y. Further suppose the demand for X has fallen while the demand for Y has increased. If economy-wide productivity and the average wage each rise by 3%, we should expect that:
a. output and employment in X will increase relative to Y
b. output and employment in X and Y will not change relative to one another, since wages will increase by 5% in X and 2% in Y
c. output and employment in Y will increase relative to X
d. no statement can be made concerning output and employment in either industry without more information
Q:
Suppose demand conditions in industries X and Y are identical but that productivity increases by 5% in industry X and 2% in industry Y. If economy-wide productivity and the average wage each rise by 3%, we should expect that unit labor costs will:
a. increase by the same amount in both industries, in accord with the overall increase in the average wage
b. increase in both industries, but more in industry X than industry Y
c. increase in industry X and decrease in industry Y
d. decrease in industry X and increase in industry Y
Q:
Wage rates tend to change with national rather than with industry productivity because:
a. the minimum wage and other government controls prevent industry wage differentials
b. productivity differences result in product price differences, leaving real wages unchanged
c. labor supply responses tend to prevent wages from diverging in the various industries
d. labor demand responses tend to prevent wages from diverging in the various industries
Q:
Productivity growth:
a. has been associated with rising aggregate unemployment
b. has been associated with growing aggregate employment
c. in specific industries results in growing employment in those industries
d. in specific industries results in growing unemployment in those industries
Q:
The critical determinants of productivity growth include all of the following except:
a. the average quality of the labor force
b. the amount of capital goods employed with each worker hour of labor
c. the efficiency with which inputs are combined
d. the extent of import restrictions
Q:
Which one of the following wage-productivity combinations will place the greatest upward pressure on the price level?
a. Nominal wage increase of 5%, productivity increase of 5%
b. Nominal wage increase of 4%, productivity increase of 2%
c. Nominal wage decrease of 5%, productivity increase of 5%
d. Nominal wage increase of 2%, productivity increase of 4%
Q:
The union wage advantage is understated because nonunion wages rise as consumer demand shifts away from relatively higher priced union produced goods. This describes the: a. product-market effect b. spillover effect c. superior-worker effect d. threat effect
Q:
The measured union wage advantage will understate the pure advantage because of the: a. spillover effect b. superior-worker effect c. product market effect d. compensating wage differential effect
Q:
If nonunion workers in a given occupation are paid $16 per hour while union workers receive $20 per hour, the pure union wage advantage is: a. 20% b. 25% c. 80% d. more information is required
Q:
Which one of the following is a true statement?
a. The union wage advantage narrows during recessions
b. There is no union wage advantage for African American males
c. Unions achieve bigger wage gains for clerical workers than workers in crafts
d. The union wage advantage is bigger for workers with less education than for workers with more education
Q:
Which one of the following union lobbying activities, if successful, would increase the demand for union labor? Lobbying for legislation that:
a. raises the price of a substitute resource
b. raises the price of a product or service complementary to that produced by the union
c. repeals the Davis-Bacon Act
d. raises the price of a complementary resource
Q:
Pattern bargaining is widely used in which industry? a. Farming b. Construction c. Trucking d. Automotive
Q:
The high psychic costs of leaving friends and family deter migration in response to wage differentials. This statement reflects the existence of: a. geographic immobilities b. sociological immobilities c. institutional immobilities d. wage immobilities
Q:
An example of a sociological immobility is:
a. ties to family and friends prevent workers from moving to a region with relatively high wages
b. craft unions limit the access of nonunion workers to apprenticeship positions
c. state governments require workers in many jobs to obtain a license
d. the so-called glass ceiling (a form of discrimination) prevents women from moving into certain high-paying managerial jobs
Q:
Fringe benefit packages differ substantially from one firm to the next because:
a. labor market information is costless
b. adjustment periods tend to be short
c. worker mobility costs are low
d. firms may structure their fringe benefit packages to attract specific types of workers
Q:
In equilibrium: a. worker A will work for firm X; worker B will work for firm Y b. worker A will work for firm Y; worker B will work for firm X c. both workers will work for firm X d. both workers will work for firm Y
Q:
refer to the following diagrams. From the indifference curves, we can infer that worker A: a. has a stronger taste for job safety relative to income than worker B b. has the same taste for job safety relative to income than worker B c. has a stronger taste for income relative to job safety than worker B d. has a lower skill level than worker B
Q:
The firms isoprofit curve, P, is shown as concave to the origin, reflecting the assumption that: a. the firm faces a constant trade-off between job safety and wages b. each successive increase in job safety comes at a decreasing expense to the firm c. each successive increase in job safety requires a smaller drop in wages to maintain normal profits d. each successive increase in job safety comes at an increasing expense to the firm
Q:
All else equal, large firms tend to pay higher wages. This may be explained by all of the following, except:
a. large firms may be more bureaucratic and a less pleasant place to work
b. large firms are more likely to be unionized
c. workers at large firms are more highly specialized, requiring more on-the-job training
d. large firms are more likely to discriminate against women and minorities
Q:
All else equal, the wage paid to steelworkers in Youngstown, Ohio will be lower if:
a. the cost of living in Youngstown is lower than elsewhere
b. working in the steel industry is louder and more dangerous than similar jobs
c. steelworkers have less control over their work environment than in similar jobs
d. there are fewer prospects for promotion among steelworkers than in similar jobs