What is the pure rate of interest?
What will be an ideal response?
When economists talk about “the interest rate” they are referring to the pure rate of interest that is best measured by the interest paid on long-term and risk less securities, such as thirty-year bonds of the U.S. government.
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If the nation's economy were always on its long-run growth path, then unemployment would be equal to
A) the natural rate of unemployment. B) frictional unemployment. C) cyclical unemployment. D) structural unemployment.
Why do cartels often break down?
What will be an ideal response?
Economic rent serves
A) a descriptive function by making some wealthier than others, but serves no allocative function. B) an allocative function by guiding available supplies to the most efficient use. C) only to make the rich richer and the poor poorer. D) no useful function in a modern economy.
Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a
a. higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. b. higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. c. lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. d. lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.