Under which of the following conditions will the actual rate of unemployment tend to rise above the natural rate of unemployment?
a. Prices are stable and have been for the last four years.
b. Inflation is 3 percent and was widely anticipated more than a year ago.
c. Expansionary monetary policies lead to an unexpected increase in inflation from 3 percent to 7 percent.
d. Restrictive monetary policies lead to an unexpected reduction in inflation from 6 percent to 2 percent.
D
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A person 16 years or older who does not work, but is actively looking for work, is officially classified as:
A. unemployed. B. employed. C. chronically unemployed. D. out of the labor force.
Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $4 and the price of D is $2, then:
A. the marginal utility of D is twice that of C. B. the marginal utility of D is the same as that of C. C. the marginal utility of C is twice that of D. D. the marginal utility of C is four times that of D.
Which of the following would be a fixed input to an automobile firm?
A) steel B) a plant in California C) car batteries D) engineers
Autonomous real investment spending is
A. the level of investment expenditure required to keep the economy expanding at its current growth rate. B. the level of investment expenditure required to replace capital lost to depreciation. C. the level of investment expenditure that would prevail if interest rates were zero. D. the level of investment expenditure that is independent of real GDP.