Which of the following statements is true?
A. The four phases of the business cycle, in order, are: peak, recovery, trough, recession.
B. When unemployment is rising then real GDP is rising.
C. The economic problem typically associated with a recovery is rising unemployment.
D. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.
Answer: D
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Use the above figure. A leftward shift of the supply curve, ceteris paribus, would result in
A) euro depreciation. B) dollar appreciation. C) dollar depreciation. D) increasing the equilibrium quantity of euros.
Which one of the following is a monetary policy instrument used by the European Central Bank (ECB)?
(a) Open Market Operations; (b) Interest rates; (c) Reserve Ratios; (d) All of the above.
Which of the following best describes a Nash equilibrium?
A. An outcome from which one or both competitors can improve their position by adopting an alternative strategy. B. The unstable outcome of a repeated game. C. An outcome that is stable only because of credible threats. D. An outcome that both competitors see as optimal, given the strategy of their rival.
Refer to the above figure. The curve reflects
A. the law of increasing marginal product in labor. B. the law of diminishing marginal product in capital. C. the law of diminishing marginal product in labor. D. the law of increasing marginal product in capital.