Exam 13: The Labor Market in the Macroeconomy

If the relationship between the change in the inflation rate and the unemployment rate is depicted by the PP curve, then the value of the unemployment rate where the PP curve crosses zero is the nonaccelerating inflation rate of unemployment.

If inflationary expectations decrease, the Phillips curve will

There is ________ relationship between the price level and the level of aggregate output when both aggregate supply and aggregate demand are changing simultaneously.

Refer to the information provided in Figure 13.3 below to answer the questions that follow. Figure 13.3 -Refer to Figure 13.3. A firm might pay wages above $10 per hour if it believes such a wage will result in all of the following except

If a country has a population of 300 million, 135 million people employed and 15 million people looking for work, then its unemployment rate is

What sequence of events results from a decrease in aggregate demand?

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7 -Refer to Figure 13.7. Suppose the economy is at Point C. What can possibly move the economy to Point D?

The number unemployed divided by the labor force is the

Efficiency wages may increase worker productivity.

Refer to the information provided in Figure 13.2 below to answer the questions that follow. Figure 13.2 -Refer to Figure 13.2. If this firm pays the efficient wage of $9

Refer to the information provided in Figure 13.8 below to answer the questions that follow. Figure 13.8 -Refer to Figure 13.8. Along SRPC₂, expected inflation equals

Refer to the information provided in Figure 13.6 below to answer the questions that follow. Figure 13.6 -Refer to Figure 13.6. Panel C represents the typical shape of the

The downward rigidity of wages as an explanation for the existence of unemployment is known as

Refer to the information provided in Figure 13.6 below to answer the questions that follow. Figure 13.6 -Refer to Figure 13.6. Which panel represents the short-run Phillips curve?

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7 -Refer to Figure 13.7. If the economy is at Point A, an increase in money supply will move the economy to Point ________ in the short run.

Someone who has decided that her time is more valuable in nonmarket activities than it is when spent working is considered unemployed.

An unspoken agreement between workers and firms that the firm will not cut wages is known as

Refer to the information provided in Figure 13.1 below to answer the questions that follow. Figure 13.1 -Refer to Figure 13.1. According to classical economists if the wage rate is $6, the wage rate will ________ to eliminate the ________.

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7 -Refer to Figure 13.7. Suppose the economy is at Point A and the cost of inputs is fixed. A decrease in government spending could move the economy to Point

The natural rate of unemployment is sometimes taken as the sum of frictional unemployment and structural unemployment.