If the natural rate of unemployment equals 5 percent and the actual rate of unemployment equals 6 percent, then cyclical unemployment equals:
A. 1.2 percent.
B. 11 percent.
C. 1 percent.
D. -1 percent.
Answer: C
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Variables measured at current market prices are nominal, rather than real. In what sense are nominal variables unreal?
What will be an ideal response?
Nominal GDP targeting ________
A) is consistent with a dual mandate B) has been adopted in more countries than have adopted inflation targeting C) is, compared to inflation targeting, easier both to implement and to explain D) is preferred strongly by "conservative" central bankers
Macroeconomics is the study of
a. how the price of gasoline is determined b. large objects c. the economic behavior of individual decision makers d. the behavior of the economy as a whole e. the economic behavior of individual firms
Individual decision making by consumers and producers is the focus of
A. macroeconomics. B. aggregate measures. C. microeconomics. D. any economic model.