How might the increase in the natural rate of unemployment in Europe be related to the increase in income inequality in the United States?
What will be an ideal response?
The link is the skill-biased technical change that occurred in the 1980s and 90s. The result in Europe was that unskilled workers came to rely increasingly on government benefits and work rules. The result in the U.S. is that unskilled workers have stagnant real income and deteriorating job prospects, unless they are able to access the educational path to skilled employment.
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The equation of exchange is a formula indicating that the number of monetary units times
A) the number of times each monetary unit is spent on final goods and services is identical to the price level times real GDP. B) real GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services. C) nominal GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services. D) the price level is identical to the number of times each monetary unit is spent on final goods and services times real GDP.
In this graph for the marginal costs and benefits of pollution controls, at output level Q*, pollution control is ______.
a. unnecessary
b. optimized
c. insufficient
d. excessive
Why can’t food be used as a form of money?
What will be an ideal response?
Which of the following is not a factor in the equation of exchange?
A) Money velocity B) Money supply C) The price level D) Nominal income