When the Fed slows the rate of growth of the money supply to slow down the economy, the unemployment type that will be directly affected is the
A. cyclical unemployment.
B. natural rate of unemployment.
C. structural unemployment.
D. frictional unemployment.
Answer: A
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A perfectly competitive firm has to charge the same price as every other firm in the market. Therefore, the firm
A) faces a perfectly elastic supply curve. B) is not able to make a profit in the short run. C) faces a perfectly inelastic demand curve. D) is a price taker.
A ________ makes investment in established businesses which are publicly traded and takes them private
A) sovereign wealth fund B) capital buyout fund C) hedge fund D) venture capital fund
In response to the demands of environmentalists, large sections of timberlands are put off limits to logging. What effect will this have on the aggregate supply curve?
a. Shift it outward. b. Shift it inward. c. Move the economy up along the curve. d. Move the economy down along the curve.
Government expenditure ________ change potential GDP and taxes ________ change potential GDP
A) can; can B) cannot; can C) can; cannot D) cannot; cannot E) None of the above answers is correct.