The structural unemployment rate is 1.3 percent, the frictional unemployment rate is 2.1 percent, and the economy's current unemployment rate is 4.9 percent. The economy is in
A) a recessionary gap producing less than Natural Real GDP.
B) an inflationary gap producing more than Natural Real GDP.
C) long-run equilibrium.
D) an inflationary gap producing Natural Real GDP.
E) a recessionary gap producing more than Natural Real GDP.
A
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Monetary costs and opportunity costs are always identical.
Answer the following statement true (T) or false (F)
Which of the following is a nominal quantity?
A. The amount of coal mined in one month B. The current price of a barrel of oil C. The number of people unemployed D. The number of cars produced in 2005
The difference between gross investment and net investment is
A) the capital stock. B) depreciation. C) the real interest rate. D) equal to saving.
Congress passed legislation to create the federal reserve system in 1913 in order to
A. Take the monetary control over the economy away from the Treasury Department B. End the instability created by a huge crude oil price hike during that time C. End the instability created by bank panics by acting as a lender of last resort