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.Management Sciences
Category: Aggregate Supply, Unemployment And Inflation
The abolition of income tax would probably ______ the number of workers in employment and _______ the equilibrium rate of unemployment?
0
A. increase reduce
B. increase, increase
C. reduce, increase
D. reduce, reduce
Possible causes of involuntary unemployment are ?
A. minimum wage agreements
B. trade
C. scale economies
D. insider-outsider distinctions
E. efficiency wages
F. all of the above
The classical model of macroeconomics assumes ?
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
Potential GDP is the level of aggregate output ?
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
The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
A. long run, short run
B. flexible imperfect markets
C. short-term long run
D. long run, imperfect markets
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