The natural rate of unemployment:
A. occurs at the economy's potential level of output.
B. is zero.
C. will cause a steady rise in the price level.
D. All of these statements are true.
A. occurs at the economy's potential level of output.
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Assume that at the beginning of 2012, one dollar could be traded for 5 yuan. If in 2013 one dollar was being traded for 6 yuan, it can be concluded that:
A) the dollar appreciated against the yuan and the yuan depreciated against the dollar in 2013. B) the real exchange rate changed in 2013 assuming PPP holds. C) the nominal exchange rate did not change in 2013. D) the dollar depreciated against the yuan and the yuan appreciated against the dollar in 2013.
Trade restrictions can take any of the following forms except one. Which is the exception?
a. tariffs b. free trade agreements c. quotas d. voluntary trade restrictions e. health and safety restrictions
A market is in equilibrium:
A. if the amount producers want to sell is equal to the amount consumers want to buy. B. whenever the demand curve is downsloping and the supply curve is upsloping. C. provided there is no surplus of the product. D. at all prices above that shown by the intersection of the supply and demand curves.
Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the levels of investment spending associated with each curve. All figures are in billions. A shift in the aggregate demand curve from AD3 to AD2 can be achieved by Federal Reserve action to:
A. Increase the reserve ratio
B. Increase the discount rate
C. Buy government securities in the open market
D. Sell government securities in the open market