What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?
What will be an ideal response?
Full employment exists when approximately 95 percent of the civilian labor force is employed. This implies a natural rate of unemployment of approximately 5 percent. The natural rate of unemployment consists of the frictionally and structurally unemployed. The only other type of unemployment is cyclical unemployment.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
In which countries are incomes distributed most unequally and least unequally?
What will be an ideal response?
For an inferior good:
a. the income elasticity is positive. b. the income elasticity if negative. c. the income elasticity is zero. d. the income elasticity is unity.
Which of the following is false? a. When demand is elastic, quantity and total revenue change in the same direction along it. b. When demand is inelastic, quantity and total revenue change in the opposite direction along it. c. When supply is elastic, quantity and total revenue change in the same direction along it
d. When supply is inelastic, quantity and total revenue change in the opposite direction along it.