Full employment means which of the following is zero?
A. structural unemployment
B. cyclical unemployment
C. frictional unemployment
D. aggregate unemployment
Answer: B
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In the midst of the Great Depression, President Roosevelt in a radio address to the nation encouraged everyone to "spend ourselves into prosperity." His advice reflected
A) Say's Law. B) the expenditure multiplier effect. C) his view that there should be no saving and no dissaving. D) his view that induced expenditure was less important than autonomous expenditure. E) the difference between actual aggregate expenditure and planned aggregate expenditure.
According to the Taylor rule, if the inflation rate in the last year was 2% and output was equal to its full-employment level, the nominal Fed funds rate should be
A) 3%. B) 4%. C) 5%. D) 6%.
Why is it true that domestic product and national income must be equal?
a. The IRS national accounting system assures that taxes equal total income. b. The total amount of spending must equal total national sales. c. The value of final product must equal the sum of resource income that produced it. d. The total amount of income earned is eventually spent.
Tax incidence
a. depends on the legislated burden. b. is entirely random. c. depends on the elasticities of supply and demand. d. falls entirely on buyers or entirely on sellers.