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frictional unemployment, structural unemployment, seasonal unemployment, cyclical unemployment
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- Which of the following is not a correct way to measure GDP?
- c. An efficiency wageA.increases the unemployment rate since firms pay a higher-than-market wage that increases the quantity of labor supplied.B.has no impact whatsoever on the unemployment rate.C.decreases the unemployment rate since it increases the labor productivity.D.decreases the unemployment rate since firms pay a lower-than-market wage that decreases the quantity of labor supplied.
- Suppose there are constant returns to scale. Now suppose that over time a country doubles its workers, its natural resources, its physical capital, and its human capital, but its technology is unchanged. Which of the following would double? a. both output and productivity b. output, but not productivity c. productivity, but not output d. neither productivity nor output