Because Unemployment Is a Macroeconomic Topic,an Increase in Unemployment Would

question 94

True/False

Because unemployment is a macroeconomic topic,an increase in unemployment would not be expected to have any impact on the equilibrium price or quantity in the market for an individual good.

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Definitions:

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to adjust fully to changes in market conditions.

Average Variable Costs

Costs that vary with the level of output, calculated by dividing the total variable costs by the quantity of output produced.

Shutting-Down

A short-run decision by a firm to halt production because operating would lead to a loss greater than the fixed costs.

Hostages

Individuals held captive by others as security for the fulfillment of specific conditions or demands.