When macroeconomists refers to "full employment," what do they mean?
A. Full employment occurs when the unemployment rate equals zero.
B. Full employment occurs when there is only cyclical unemployment, and all other types of unemployment have been eliminated.
C. Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated.
D. Full employment occurs when there is only frictional unemployment; structural and cyclical unemployment has been eliminated.
Answer: D
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According to the Economics in Action story “A Crushing Reversal” in the slides of chapter 7, what happened to the market for wine in the US between the mid-1990s and 2002? In the mid-1990s, demand for wine in the US increased, which first resulted in higher wine prices and profits until…
A) some producers exited the market so that lower supply pushed prices up even further. B) some producers exited the market so that lower supply pushed prices down again. C) new producers entered the market so that higher supply pushed prices up even further. D) new producers entered the market so that higher supply pushed prices down again.
Output in an economy can be decreased by
A. using more machines. B. limiting the work week. C. adding more workers. D. all of the above
Cummins, Hubbard, and Hassett studied the effects of taxes on investment by
A. examining what happened to investment when major tax reforms took place. B. raising tax rates on certain businesses and testing their reaction. C. raising tax rates on equipment and reducing tax rates on structures. D. seeing if investment spending is correlated with taxes on investment.
The possible double taxation of income is a disadvantage for
A) sole proprietorships and partnerships. B) partnerships and corporations. C) sole proprietorships and corporations D) corporations.