If cyclical unemployment is eliminated in the economy, then
A) the economy is considered to be at full employment.
B) the unemployment rate is below the natural rate of unemployment.
C) the unemployment rate is above the natural rate of unemployment.
D) the economy is at less than full employment.
Answer: A
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Refer to the scenario above. What is the number of unemployed workers in the economy?
A) 1 million B) 2 million C) 3 million D) 4 million
If real GDP per person rises above the subsistence level then, according to classical growth theory,
A) a population explosion will occur. B) labor productivity growth permanently increases. C) population growth will slow down. D) real GDP per person will fall below the subsistence level. E) real GDP per person will remain above the subsistence level.
Behavioral game theory assumes
A) people act rationally. B) people are subject to biases that cause them to act irrationally. C) that people behave differently when playing games than when "playing for real." D) people optimize using all available information.
Which of the following would likely cause the dollar to depreciate?
a) Rising interest rates in the United States. b) An increase in United State citizens' preference for foreign goods. c) Income growth of the United States lagging behind that of other countries. d) Lower inflation in the United States.