All points on the long-run Phillips curve that are sustainable in the long run due to economy’s self-correcting mechanism correspond to the
A. mature rate of unemployment.
B. natural rate of unemployment.
C. seasonal rate of unemployment.
D. cyclical rate of unemployment.
Answer: B
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The consumer price index is used to
a. monitor changes in the level of wholesale prices in the economy. b. monitor changes in the cost of living over time. c. monitor changes in the level of real GDP over time. d. monitor changes in the stock market.
The costs of unemployment are lowest (and perhaps even negative) for ________ unemployment.
A. structural B. cyclical C. frictional D. cyclical and structural
In comparison to perfect competition, monopoly price-quantity combinations generate
A. deadweight loss. B. total revenue to the producer that is smaller. C. a producer surplus that is smaller. D. a consumer surplus that is larger.
Which of the following statements is NOT true?
A. Economic theory often makes unrealistic assumptions. B. Economists ignore details to focus on complex problems. C. Abstraction is not an important part of economic analysis. D. The word theory means different things to economists and to ordinary people.