Category: Aggregate Supply, Unemployment And Inflation

A. increase reduce
B. increase, increase
C. reduce, increase
D. reduce, reduce

A. minimum wage agreements
B. trade
C. scale economies
D. insider-outsider distinctions
E. efficiency wages
F. all of the above

A. wages and prices are sticky
B. wages and prices are flexible
C. the economy may operate below full capacity
D. the economy is always at full capacity
E. A and C
F. B and D

A. that can be produced if structural unemployment is zero
B. that can be produced at a zero-unemployment rate
C. that can be sustained in the long run without inflation
D. that can be sustained in the long run, if the inflation rate is zero

A. long run, short run
B. flexible imperfect markets
C. short-term long run
D. long run, imperfect markets

A. the inflation rate, interest rates
B. the inflation rate, the unemployment rate
C. interest rates, output
D. output, employment

A. Vertical or nearly vertical
B. upward sloping
C. downward sloping
D. horizontal or nearly horizontal

A. lower unemployment rate will tend to lower the inflation rate
B. lower unemployment rate will tend to raise the inflation rate
C. raise inflation rate will tend to raise the unemployment rate
D. lower inflation rate will tend to raise the unemployment rate

A. exceeds
B. fall below
C. fluctuate around
D. remain equal to

A. an implicit or social contract
B. a relative-wage contract
C. employment at will
D. an explicit contract