The natural rate of unemployment is the:
A. unemployment rate experienced at the depth of a depression.
B. full-employment unemployment rate.
C. unemployment rate experienced by the least-skilled workers in the economy.
D. unemployment rate experienced by the most-skilled workers in the economy.
B. full-employment unemployment rate.
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In monopolistic competition, firms can make an economic profit in
A) the short run and in the long run. B) the short run but not in the long run. C) the long run but not in the short run. D) neither the long run nor the short run.
Which of the following pairs of policies have inconsistent effects on aggregate demand? a. A tax increase and an increase in the money supply
b. A transfer payment increase and an increase in the money supply. c. A reduction in government purchases and a reduction of the money supply. d. none of the above
The classical model fails to recognize that
a. labor markets always clear b. managers develop paternalistic feelings toward their workers c. labor markets do not always clear d. what was true yesterday might not be true today e. search costs are low during recessions
Other things being equal, a depreciation of the dollar
A. decreases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources. B. decreases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources. C. increases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources. D. increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.