Unemployment insurance:
A. will not affect the natural rate of unemployment.
B. is an explanation for why wages do not reach equilibrium.
C. can affect how quickly people find jobs.
D. is a mandated federal policy all states must adhere to.
Answer: C
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Which of the following statements is correct?
A. A single bank can legally lend an amount equal to its total reserves. B. When borrowers repay bank loans, the money supply is increased. C. A bank can only grant loans to customers if it has excess reserves. D. When borrowers take out bank loans, the money supply is decreased.
Growth in labor productivity in the economy as a whole has been ________ labor productivity in health care
A) slightly faster than B) almost twice as slow as C) approximately equal to D) more than twice as fast as
If the price level in the United States is 110, the price level is 135 in Mexico, and the nominal exchange rate is 12.5 pesos per dollar, what is the real exchange rate from the U.S. perspective?
A) 8.8 B) 10.2 C) 10.8 D) 11.4
Everything else held constant, a depreciation of the domestic currency will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase B) right; decrease C) left; increase D) left; decrease