Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?
What will be an ideal response?
Frictional, seasonal, and structural unemployment
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Refer to Figure 9.2. A movement from point d to point b could be caused by a(n)
A) increase in government spending. B) increase in the price of oil. C) increase in taxes. D) decrease in short-run aggregate supply.
The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?
A) a decline in his preferences for both gasoline and coffee B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee C) a decrease in Sam's income D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee
How has the globalization of financial markets affected the way in which countries conduct their economic policies?
What will be an ideal response?
Actual output exceeds the natural output when
A) the actual budget deficit is above the structural deficit. B) the actual budget deficit is below the structural deficit. C) the structural deficit is positive. D) the structural deficit is negative.