Unemployment insurance:
A. is an explanation for why wages do not reach equilibrium.
B. can affect how quickly people find jobs.
C. will not affect the natural rate of unemployment.
D. is a mandated federal policy all states must adhere to.
B. can affect how quickly people find jobs.
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Wages that are "sticky":
A. pull other prices up or down with them when they change. B. have not changed, in real terms, for decades. C. are stuck where they are and fail to adjust downwards in a recession. D. are pegged to other variables, such as product prices.
The president of XYZ, Incorporated is considering the purchase of new equipment. The equipment is expected to increase profits by $25,000 per year for four years. After that, the equipment will have no value
If the machine costs $80,000 and the market rate of interest is 6 percent, should your firm purchase the machine? Explain.