Which of the following statements is correct regarding the model of the labour market? A) Labour-saving technological progress raises unemployment in both the short and long run. B) In the long-run model, the markup is independent of the number of firms. C) In the long-run model, firms enter the market when the markup is low. D) In the short- and medium-run models the amount of capital is fixed, while in the long-run model the amount of capital can vary.
Which of the following statements is correct regarding the model of the labour market? A) Labour-saving technological progress raises unemployment in both the short and long run. B) In the long-run model, the markup is independent of the number of firms. C) In the long-run model, firms enter the market when the markup is low. D) In the short- and medium-run models the amount of capital is fixed, while in the long-run model the amount of capital can vary.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 3CQ
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Which of the following statements is correct regarding the model of the labour market?
A) Labour-saving technological progress raises unemployment in both the short and long run.
B) In the long-run model, the markup is independent of the number of firms.
C) In the long-run model, firms enter the market when the markup is low.
D) In the short- and medium-run models the amount of capital is fixed, while in the long-run model the amount of capital can vary.
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