The natural rate of unemployment is
A) the unemployment rate when cyclical unemployment is the only type of unemployment.
B) the unemployment rate when there is no frictional unemployment.
C) the rate of unemployment associated with long-run equilibrium.
D) zero.
Ans: C) the rate of unemployment associated with long-run equilibrium.
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Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 10,000 pounds of cheese and 30 cars B. 10,000 pounds of cheese C. 5,000 pounds of cheese and 20 cars D. 30 cars
Why does bad money drive out good money? Because
a. money has high liquidity so that an excess supply of money creates unnecessary money, which comes to dominate the money market b. Say's Law means that money supply creates money demand and if too much money is created, it is bad because it can create inflation c. good money is in the form of bullion (specie, such as gold) which is preferred over nonbullion money d. people will not use bad money for exchange because it means exchanging it away so that bad money never serves the role of money e. people will not use good money for exchange because it means exchanging it away so that good money never serves the role of money
Which of the following variables related to a worker's wage are the most difficult to measure?
a. ability, effort, and chance b. job characteristics, gender, and race c. gender, race, and geographic location d. years of schooling, age, and years of experience
Which government entity computes U.S. GDP every three months?
a. the Council of Economic Advisers b. the Department of Commerce c. the Department of Treasury d. the Federal Reserve