A difficulty faced by policymakers who wish to use the unemployment rate as a guide to whether the economy is weak or strong is that
A) the natural rate of unemployment is hard to measure.
B) the natural rate of unemployment almost never changes.
C) policymakers must use data on output to tell whether the unemployment rate is too high or too low.
D) the impact of policy on the economy is subject to long and variable lags.
A
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Gruel is an inferior good. Hence, a decrease in people's incomes
A) shifts the supply curve of gruel leftward. B) decreases the quantity of gruel supplied. C) shifts the demand curve for gruel rightward. D) shifts the demand curve for gruel leftward.
What is marginal factor cost? How is it related to the supply curve of an input?
What will be an ideal response?
Which of the following statements best describes the circumstances in which exchange rates are beneficial to bank or government borrowing?
a. A bank or government will benefit by borrowing in a domestic currency and lending in a foreign currency, provided the exchange rate does not shift. b. A bank or government will benefit by borrowing in a foreign currency and lending in a domestic currency works well, provided the exchange rate does not shift. c. A bank or government will benefit by borrowing in a foreign currency and lending in a domestic currency works well, provided the exchange rate increases. d. A bank or government will benefit by borrowing in a foreign currency and lending in a domestic currency works well, provided the exchange rate decreases.
Assume that Ava is a single parent who is in poverty. She receives food stamps and Medicaid. For every $100 that she earns, Ava loses $20 of her food stamp benefits and $15 in her Medicaid benefits. Ava's implicit marginal tax rate from these two programs is
a. 20 percent. b. 30 percent. c. 35 percent. d. 45 percent.