When the rate of cyclical unemployment is zero, the
a. natural rate of unemployment must also be zero
b. rate of frictional unemployment must be negative
c. economy must have entered a recessionary stage
d. Keynesian aggregate supply curve must be horizontal
e. economy is considered to be at full employment
E
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The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle
A) expansion. B) peak. C) trend. D) recession. E) trough.
The U.S. interest rate minus the foreign interest rate is called the ________
A) foreign interest rate differential B) U.S. bond rate differential C) U.S. interest rate differential D) U.S. stock yield differential
Suppose that Coke and Sprite each sell for $2 a can. Each month Joe buys 6 cans of Sprite and 30 cans of Coke. From this we can infer that:
A. Joe is maximizing his utility if his marginal utility from the 6th can of Sprite he buys is equal to his marginal utility from the 30th can of Coke he buys. B. Joe is buying too many cans of Coke. C. Joe is maximizing his utility if his marginal utility from the 6th can of Sprite he buys is less than his marginal utility from the 30th can of Coke he buys. D. Joe is buying too many cans of Sprite.
Answer the next question based on the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityTotal OutputTotal Cost$50$3522$4545303355402544703520559030156611525107714520588180If columns 1 and 3 are this firm's demand schedule, the profit-maximizing level of output will be
A. 6 units. B. 3 units. C. 4 units. D. 5 units.