A necessary condition for the economy to be self-regulating is that
A) wages must be relatively high.
B) the labor market must always be in equilibrium.
C) the interest rate must be above its equilibrium level.
D) wages must be flexible in both an upward and downward direction.
E) none of the above
D
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The natural rate hypothesis concludes that when the inflation rate unexpectedly increases, the unemployment rate ________
But when the higher inflation rate becomes the expected inflation rate, the unemployment rate then ________ until it reaches the ________ unemployment rate. A) decreases; decreases; natural B) increases; decreases; natural C) decreases; increases; natural D) increases; decreases; minimum E) decreases; increases; maximum
Factors that affect the ability of oligopolistic firms to successfully engage in cooperation include ____
a. number and size distribution of sellers b. size and frequency of orders c. product heterogeneity d. a and b only e. a, b, and c