Which of the following is the term for the baseline level of unemployment that occurs year-in and year-out and is determined by how well the structures of market and government institutions in the economy lead to a matching of workers and employers in the labor market?
a. Natural
b. Structural
c. Cyclical
d. Full
a. Natural
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An expansionary monetary policy may cause asset prices to rise, thereby reducing the likelihood of financial distress and causing consumer durable and housing expenditures to rise. This monetary transmission mechanism is referred to as
A) the household liquidity effect. B) the wealth effect. C) Tobin's q theory. D) the cash flow effect.
Private parties may choose not to solve an externality problem if the transaction costs are large enough
a. True b. False Indicate whether the statement is true or false
Who selects the board of directors of a corporation?
A) the state where the corporation is chartered B) employees C) stockholders D) managers
The new Keynesians emphasize the importance of
A) rational expectations. B) sticky wages and prices. C) real causes of the business cycle. D) the monetary growth rule.