What is the natural rate of unemployment?
A) the unemployment rate that exists when the economy is at a trough in a business cycle
B) any unemployment rate that is above the inflation rate
C) the unemployment rate that exists when the economy is at potential GDP
D) an unemployment rate of 0%
C
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An increase in government spending will force an appreciation of the dollar, which causes net exports to fall
Indicate whether the statement is true or false
An important element in estimating the present value of an investment is the calculation of the discount factor. The discount factor may be expressed as _______ where r is the discount rate and n is the number of years the investment is held
a. (1 + r)n b. (1 + n)r c. 1/(1 + r)n d. 1/(1 + n)r
If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income
a. 5 b. 10 c. 15 d. 20
Suppose in a certain city the demand for low-cost housing can be characterized by the equation P = 500 - 2Q, where Q is housing measured in square feet. Further, suppose that supply is characterized by the equation: P = 25 + 3Q.
(A) How much consumer surplus is there? (B) Suppose that a grant is given so that the supply of housing is increased. This increase changes the supply curve to P = 3Q. How much does consumer surplus change because of the grant?