Describe what the term "full employment" means to an economist
Full employment exists when the economy is operating at its natural unemployment rate. Full employment does not mean that the unemployment rate is zero percent because some unemployment is natural in a dynamic, changing economy.
You might also like to view...
Elasticity of demand is calculated by dividing the change in quantity by the change in the price of a good.
Answer the following statement true (T) or false (F)
Which of the following is true under natural monopoly?
a. The marginal cost curve will be above the average cost curve. b. The monopolist will set price equal to marginal cost and will earn economic profits. c. Economies of scale exist. d. Output is produced under conditions of constant cost.
Economists of the rational expectations school believe that expansionary monetary policy is fully effective only if: a. the policy is anticipated by workers and firms
b. it causes the aggregate supply curve to shift to the left. c. the economy is operating at or above its potential output level. d. policy makers follow through on their previously announced plans. e. the policy is totally unexpected.
If the growth rate of velocity changes:
A. the growth rate of the money supply must change in the same direction. B. the growth rate of the money supply must change in the other direction. C. the growth rate of C, I, G, or NX must change. D. the growth rates of C, I, G, and NX must all change.