Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. If the natural rate of unemployment is 5 percent, how do you expect inflation to change?
What will be an ideal response?
Inflation is stable when the unemployment rate is equal to the natural rate of unemployment. Since last year's unemployment rate was equal to the natural rate of unemployment, the inflation rate should not change.
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When you graduate from college, you may not immediately jump into a job but wait a few months "sampling" the possibilities. During this time, you may be forced to live with your parents and play by their rules. When the BLS comes by to inquire about your working status and you tell them your story, the BLS will record you as being
a. in the labor force but structurally unemployed b. spoiled and lazy c. frictionally unemployed d. not part of the labor force because you're not really looking for a job e. not in the labor force because you are categorized as belonging to a set of people who are of military age and not working
A key determinant of the price elasticity of supply is
a. the ability of sellers to change the price of the good they produce. b. the ability of sellers to change the amount of the good they produce. c. how responsive buyers are to changes in sellers' prices. d. the slope of the demand curve.
Other nations had tried economic union in the past, and since adopting a common currency had shown economic benefits for them, the nations of Europe decided to try it too
Indicate whether the statement is true or false
The time period during at least one input cannot be changed is the
A. long run. B. production time. C. calendar year. D. short run.