The key feature due to which unexpected inflation decreases the unemployment rate is that:
a. expectations are formed irrationally.
b. reservation wages of workers are fixed.
c. workers behave irrationally.
d. firms are greedy.
e. government policy is time consistent.
b
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Suppose that all countries eliminate their barriers to trade. The HeckscherOhlin model predicts that:
a. wages should become more equal throughout the world. b. wages should become more unequal throughout the world. c. the volume of international trade should fall. d. there should be increased migration of labor among countries.
Answer the following statements true (T) or false (F)
1) Preferred provider organizations (PPOs) are a type of managed-care organization. 2) The federal government in 2006 enacted limits on "pain and suffering" awards on medical malpractice lawsuits against physicians. 3) The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine. 4) The Patient Protection and Affordable Care Act prohibits insurance companies from denying coverage to anyone on the basis of a preexisting medical condition.