Is it possible for the economy to be at full employment and still have some people who are unemployed?
A) No, full employment means that no one is unemployed.
B) Yes, since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment.
C) Yes, since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment.
D) Yes, since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate, and there is always some cyclical unemployment.
E) none of the above
B
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During the financial crisis of 2008, the fall in consumer spending:
A. prompted many firms to increase their output. B. allowed many firms to increase investment spending. C. forced many firms to lay off their workers. D. enabled many firms to increase their prices.
If the price of pizza is $10 this year and $15 next year, then 200 pizzas would contribute
A. $2,000 to this year’s GDP and $2,000 to next year’s nominal GDP. B. $3,000 to this year’s nominal GDP and $3,000 to next year’s nominal GDP. C. $2,000 to this year’s nominal GDP and $3,000 to next year’s nominal GDP. D. $3,000 to this year’s GDP and $2,000 to next year’s GDP.
According to the assignment rule, which of the following policy mixes is appropriate for a country with excessively low unemployment, a balance of payments surplus, and fixed exchange rates?
A. Contractionary fiscal policy and expansionary monetary policy B. Expansionary fiscal policy and expansionary monetary policy C. Contractionary fiscal policy and contractionary monetary policy D. Expansionary fiscal policy and contractionary monetary policy
To an economist, the term "needs"
A. identifies the purchases of basic goods and services. B. refers only to material desires but not nonmaterial desires. C. refers to the purchase of goods by the poor. D. is objectively undefinable.