The natural rate of unemployment
A. exists only during periods of recession or depression in the economy.
B. prevails in long-run macroeconomic equilibrium, when all workers and employers have fully adjusted to any changes in the economy.
C. prevails in the short-run macroeconomic equilibrium, before workers and employers have had a chance to adjust to an economic shock.
D. exists due to welfare and unemployment benefits that reduce potential workers' incentives to find work.
Answer: B
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In the first years of a professional athlete's career, the athlete is "under reserve," which means that he or she cannot negotiate with other teams. This implies that, everything else equal,
A) the player's salary is probably higher than it otherwise would be. B) the player's salary is probably lower than it otherwise would be. C) the player's salary is probably the same as it otherwise would be. D) the player is not hired by the team.
Refer to Game Matrix III. Which of the following is a property of this game?
Game Matrix III
The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.
a. Both firms have dominant strategies.
b. There is no pure strategy Nash equilibrium.
c. There is a Nash equilibrium and it is Pareto optimal.
d. There is a Nash equilibrium and it is not Pareto optimal.