Which of the following events challenged Keynesian views, and led to the popularity of Milton Friedman's ideas?
a. The hippie community started advocating socialist values.
b. Hard-core republicans came into office.
c. The U.S. economy faced high levels of inflation and unemployment simultaneously.
d. The oil crisis exploded.
e. Countries that followed Friedman's ideas performed better.
c
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A minimum wage law might increase wages without reducing employment if the hiring firm is
a. in perfect competition. b. a monopolist. c. a monopolistic competitor. d. a monopsonist.
If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:
A. there isn't enough room in the factory. B. there isn't an infinite number of workers. C. wages would have to increase. D. they stop when MRP = wage