If an economy has been operating below its potential output level,
a. frictional unemployment is too high
b. more individuals should begin entering the labor force
c. the government should create more jobs
d. unemployment is likely rising.
e. the production possibilities frontier will shift
D
Economics
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How are the wage rate and employment determined in a competitive labor market?
What will be an ideal response?
Economics
Economists who are skeptical of hysteresis in Europe during the 1980s and 1990s cite all of the following as reasons for persistently high unemployment in Europe EXCEPT
A) generous unemployment benefits. B) restrictions on firms' ability to hire and fire workers. C) the existence of an ongoing recession. D) high tax rates.
Economics