When the economy experiences abnormally high unemployment,
A. There is macro instability.
B. The economy is producing on the production possibilities curve.
C. No market failure occurs.
D. There is government failure.
Answer: A
You might also like to view...
It is estimated that if the inflation rate is lowered from 3 percent a year to 0 percent a year, the growth rate of real GDP will rise by ________ percentage points a year
A) 2.3 B) 3.2 C) 1 to 3 D) 0.06 to 0.09 E) 0
How does the natural rate hypothesis relate to the AS-AD model?
What will be an ideal response?
Costs that pertain to finding a trading partner and making a trade are called
A) transaction costs. B) transgression costs. C) consumption costs. D) transaction taxes.
It is best to view the official unemployment rate as a useful but imperfect measure of joblessness
a. True b. False Indicate whether the statement is true or false