The economy's natural rate of unemployment consists of:
a. structural plus frictional unemployment.
b. cyclical plus frictional unemployment.
c. structural plus cyclical unemployment.
d. structural, frictional, and cyclical unemployment.
a
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Suppose a smoker wants to quit smoking. The utility that he gets from smoking a cigarette now is 6 utils but, in the long run, that cigarette will generate undiscounted health problems of 10 utils (e.g., an elevated risk of lung cancer)
Use the concept of discounting to explain why impatient smokers may not quit smoking even though the undiscounted net utility of smoking is negative.
Compared to the United States, Japan's experience with monetary targeting during the 1978––1987 period performed
A) better with regard to the inflation rate and output fluctuations. B) worse with regard to the inflation rate and output fluctuations. C) better with regard to the inflation rate, but worse with regard to output fluctuations. D) worse with regard to the inflation rate, but better with regard to output fluctuations.
If the CPI is 100 in the base year and 108 in the current year, how much did prices rise between the base year and the current year?
A) 8 percent B) 108 percent C) 1.08 percent D) 0.08 percent E) ?80 percent
Assume the MPC is 0.8 . Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shift the aggregate demand curve to the
a. left by $180 billion. b. left by $500 billion. c. right by $180 billion. d. right by $400 billion.