Author Question: In the DMP model, an increase in productivity does not A) reduce the unemployment rate. B) ... (Read 60 times)

tnt_battle · **on:** Jun 30, 2018

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.

Question 2

Jim's Nursery produces and sells 1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers 700 in wages, pays 100 in taxes and pays 200 in interest on a loan. Jim's profit is

A) 100.
B) 200.
C) 400.
D) 800.