Which of the following is one possible explanation for the change in the natural rate of unemployment in the United States during the 1970s?
A) contractionary fiscal policy
B) an increase in the proportion of labor contracts that were indexed
C) contractionary monetary policy
D) all of the above
E) none of the above
E
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Consider a monopolist which sells output in two markets, the home market and the foreign market. Initially the monopolist is unable to price discriminate and sets a single price for both markets
However, the demand in the foreign market is such that at the price the monopoly sets, no goods are sold in the foreign market. If the monopolist is then able to price discriminate, will the overall deadweight loss increase or decrease? Explain.
A major benefit of a health savings account is that it
A) combats moral hazard. B) means more health care services will be demanded. C) eliminates rising health care costs. D) creates the incentive to see a doctor regularly.