Policy issues of business cycles are considered in a long-run framework.
Answer the following statement true (T) or false (F)
False
Business cycles involve stimulus policies that get the economy back to its potential. Long- run framework would focus on the economy solving its own problems.
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Frictional unemployment always exists because
A) some workers quit their jobs without having another job already lined up. B) the government has never instituted full employment policies. C) workers are lazy and refuse to accept certain jobs. D) recessions are necessary sometimes to keep the economy healthy.
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In Exhibit 3-11, in Panel A the movement from point A to point C describes a(n):
A. ambiguous change in price and a decrease in quantity. B. increase in price and an ambiguous change in quantity. C. increase in both price and quantity. D. decrease in both price and quantity.
Generally, as levels of pollution are reduced
A) marginal benefits from the reduction increase. B) marginal costs from the reduction increase. C) marginal costs from the reduction stay the same. D) marginal costs from the reduction decrease.
If the dollar was initially valued at 20 rubles and its value rises to 23 rubles, then the value of a ruble (in terms of dollars) has _____________.
Fill in the blank(s) with the appropriate word(s).