What's meant by the NAIRU (Natural Rate of Unemployment)?
A. It is the full-employment unemployment rate
B. It is the unemployment rate at which there is only frictional and structural unemployment
C. it is the unemployment rate at which the labor market has fully adjusted
D. all of the above
Answer: D. all of the above
You might also like to view...
If the exchange rate changes from 1.00 euro per dollar to 1.10 euros per dollar, the euro has
A) depreciated against the euro. B) appreciated against the euro. C) fallen inversely in value. D) appreciated against the dollar. E) depreciated against the dollar.
Suppose labor and capital are variable inputs. The wage rate is $20 per hour, the marginal product of labor is 30 units, the rental rate of capital is $100 per machine hour, and the marginal product of capital is 150 units
If the wage rate declines to $15 per hour, the firm employs more labor and the marginal product of labor declines to 20 units. Assuming the rental rate of capital remains the same, what happens to the amount of capital used by the firm? A) Decreases B) Increases C) No change D) We do not have enough information to answer this question.
Less of an economy's resources will be channeled into building new factories and equipment when: a. interest rates are high
b. households decide to save more of their income. c. firms are optimistic about their future profits. d. aggregate income increases. e. an economy has a trade deficit.
A federal deficit that raises interest rates will, everything else being equal,
a. lead to a dollar depreciation. b. decrease imports. c. reduce exports. d. reduce the balance of trade deficit.