At the economy's natural rate of unemployment:
A. the economy achieves its potential output.
B. there is only a relatively small amount of cyclical unemployment.
C. only frictional unemployment exists.
D. only structural unemployment exists.
A. the economy achieves its potential output.
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In an economy with no income taxes or imports, the marginal propensity to consume is 0.80. The expenditure multiplier is
A) 1.25. B) 10.0. C) 0.80. D) 5.00. E) 0.20.
If the reserve requirement was 5% and a bank customer makes a deposit of $1,000, the initial result would be:
a. a $950 increase in required reserves and a $50 increase in excess reserves. b. a $20,000 increase in required reserves and a $950 increase in excess reserves. c. a $50 increase in required reserves and a $20,000 increase in excess reserves. d. none of the above
The opportunity cost of leisure:
A. remains the same as wages get higher. B. decreases as wages get higher. C. increases as wages get higher. D. has nothing to do with wages.
The largest expenditure of the U.S. Federal government is for:
A. Education B. National defense C. Pensions and income security D. Interest on public debt