For several years, the U.S. unemployment rate has been below the European unemployment rate. Offer a Keynesian explanation for this
What will be an ideal response?
The aggregate supply curve in Europe is closer to horizontal than is the case in the United States. The labor market is less flexible in Europe due to higher unemployment benefits that reduce the incentive to work, and due to higher costs to firms for hiring workers.
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If the price of gold becomes less volatile, then, other things equal, the demand for stocks will ________ and the demand for antiques will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Negative marginal utility means that
a. total utility is also negative b. marginal utility increases as additional units are consumed c. the price of the product increases as additional units are consumed d. the total revenue spent on the product decreases as more of the product is purchased e. total utility decreases as additional units are consumed