The natural rate of unemployment:
A. is typically zero.
B. is the normal level of unemployment in an economy in the long run.
C. is constant over time.
D. None of these is true.
B. is the normal level of unemployment in an economy in the long run.
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Which of the following factors is the most significant in determining the pattern of international trade?
a. absolute advantage b. diplomatic expertise c. comparative advantage d. overpowering military strength e. a country's size relative to another country's
Because of the book, The Other America, Michael Harrington was important in beginning the
a. Peace Corps. b. "War on Poverty." c. regulation of industry. d. Environmental Protection Agency.
Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?
a. One neighbor doesn't mow his lawn. b. One neighbor doesn't paint her house. c. One neighbor comes home on his noisy motorcycle late at night. d. All of the above are correct.
Which of the following fiscal policy actions is most likely to increase aggregate supply?
A. An increase in personal income tax rates. B. A reduction in interest rates that encourages consumers to purchase more durable goods. C. An increase in transfer payments to unemployed workers. D. An increase in government spending on infrastructure that increases private sector productivity.