Explain the concept of an empty core
An empty core is one where the grand coalition is impossible to hold because one or more parties to the negotiation do not get the required payoff. When the core is empty, the proposals and counterproposals of negotiators to reallocate the payoffs can cycle without ever settling into an unblockable allocation. There is no set of side payments that the group's members can make among themselves that will not leave some coalition with a credible threat to exit.
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The unemployment rate is a good measure of the social welfare or social distress because
A) it includes discouraged workers. B) it distinguishes between part-time and full-time job seekers. C) it measures the "importance" of a job to each worker. D) None of the above.
Real GDP
a. moves in the opposite direction as unemployment. b. increases as production falls. c. falls when households save a smaller fraction of their income. d. All of the above are correct.