The interest rate represents the opportunity cost of holding non-monetary assets
a. True
b. False
Indicate whether the statement is true or false
False
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Recessions are identified by
a. severe and long-lasting phases of decreased output b. high employment c. constant output d. decreasing output e. low unemployment
For economists, substitutes for laboratory experiments often come in the form of
a. natural experiments offered by history. b. untested theories. c. "rules of thumb" and other such conveniences. d. reliance upon the wisdom of elders in the economics profession.
Refer to the graph shown. If expected inflation increases from 0 percent to 6 percent, the:
A. economy will move from point B to point C. B. short-run Phillips curve will shift from PC2 to PC1. C. short-run Phillips curve will shift from PC1 to PC2. D. economy will move from point C to point A.
The population is 100 million, the labor force is 70 million, and the number of unemployed is 3.5 million. What is the unemployment rate?
A. 3.5 percent B. 10 percent C. 5 percent D. 7 percent