Explain why the natural rate of unemployment is not equal to 0
The natural rate of unemployment is equal to the sum of frictional and structural unemployment, neither of
which we expect to equal 0, and both of which are natural and inevitable.
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Answer the following statement(s) true (T) or false (F)
1. A parallel shift in the budget line is caused by changes in the relative prices of the two goods. 2. Parallel shifts in the budget line are considered when deriving the demand curve for a good. 3. An Engel curve shows the relationship between price and quantity demanded. 4. Normal goods have upward-sloping Engel curves. 5. If an Engel curve is downward sloping, then one of the two goods must be inferior.
As the banking system in the United States evolves, it is expected that
A) the number and importance of small banks will increase. B) the number and importance of large banks will decrease. C) small banks will grow at the expense of large banks. D) the number and importance of large banks will increase.
The reason economists assume that firms try to maximize economic profit is
a. over time, firms that don't earn profits will have difficulty securing financing to survive b. firms in the real world always maximize profit c. profit is easier to calculate than revenues d. if a firm fails to earn a profit in its first year, it will go out of business e. profit maximization is easier for firms than revenue maximization
Productivity growth in the U.S. averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then
a. True b. False Indicate whether the statement is true or false