The natural rate of unemployment includes
A) frictional and cyclical unemployment.
B) frictional unemployment and structural unemployment.
C) only cyclical unemployment.
D) only unemployment due to layoffs and corporate downsizing.
B
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Which of the following is true? a. Sometimes the Fed moves to partly offset or even neutralize the intended effects of fiscal policy changes
b. If a consensus was reached between fiscal and monetary policy makers, you would not expect contractionary fiscal policy and expansionary monetary policy to be adopted at the same time. c. If policymakers' timing is off, expansionary monetary policy could cause an inflation problem rather than reducing a high unemployment problem. d. All of the above are true
The marginal product of any input into the production process:
A. is the constant ratio of inputs to outputs. B. is the increase in output that is generated by an additional unit of input. C. is the decrease in input that is generated by an additional unit of output. D. None of these is true.
To an economist, maximizing profit is:
A. maximizing the value of the firm. B. minimizing the future risks. C. maximizing the current year's profits. D. minimizing the permanent total costs.
Using Figure 9.9, and assuming the full-employment output level is $50 billion,
A. There is a recessionary gap of $50 billion income. B. The economy is at macro equilibrium. C. There is an inflationary gap of $25 billion income. D. There is an inflationary gap of $50 billion income.