In the DMP Model,an Increase in Productivity Does Not

question 18

Multiple Choice

In the DMP model,an increase in productivity does not

• A) reduce the unemployment rate.
• B) increase the vacancy rate.
• C) increase labor market tightness.
• D) increase the size of the labor force.

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Definitions:

Fixed Cost

Costs that do not change with the level of output produced, such as rent or salaries, remaining constant regardless of business activity levels.

Total Revenue

The total amount of money generated by a firm or entity from its business activities, calculated by multiplying the price by the quantity sold.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.