What is the natural rate of unemployment, and how does it relate to the concept of potential (or full-employment) GDP?
The natural rate of unemployment is the unemployment expected to exist in a dynamic economy even in the absence of the business cycle. It is composed of those who are structurally unemployed and frictionally unemployed. Structural unemployment results from a general mismatch between the skills of the unemployed workers and the skills needed to fill vacant job openings. Frictional unemployment is due to the ongoing process of people changing jobs and to poor information in the labor market. Potential (or full-employment) GDP is the hypothetical level of GDP that would be present if the only unemployed persons were those who were considered naturally unemployed.
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According to William Shepherd's examination of competitive trends in the U.S. economy, a market is effectively competitive if
a. the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other b. the top four firms supply more than 60 percent of the market, have stable market shares, and compete with each other c. the industry exhibits low concentration, few barriers to entry, and little or no collusion d. the industry exhibits low concentration and little or no collusion, despite significant barriers to entry e. the dominant firm has two close rivals
If a firm decides to produce a product that it once purchased from a firm upstream it has made a
A) horizontal decision. B) make or buy decision. C) downstream decision. D) sell or service decision.
A production possibilities curve that is bowed out represents the case of
A) constant costs. B) increasing costs. C) decreasing costs. D) internal costs. E) external costs.
Suppose that in 2015 the nominal exchange rate was 9 Egyptian pounds per dollar, the price of a basket of goods in the U.S. was $600 and the price of the same basket of goods in Egypt was 6000 pounds. Suppose that in 2016 these values were 10 Egyptian pounds per dollar, $620, and 7200 pounds. From 2015 to 2016 U.S. real exchange rate
a. appreciated which by itself would make U.S. net exports fall. b. appreciated which by itself would make U.S. net exports rise. c. depreciated which by itself would make U.S. net exports fall. d. depreciated which by itself would make U.S. net exports rise.