What is the natural rate of unemployment, and what types of unemployment constitute the natural rate of unemployment?
What will be an ideal response?
The natural rate of unemployment is the rate of unemployment that exists in the economy when cyclical unemployment is zero. This underlying level of unemployment in the economy consists of frictional and structural unemployment. The natural rate of unemployment is also known as the full-employment rate of unemployment.
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Bo's actions would
A) have no impact on the September unemployment rate or the October unemployment rate. B) raise the September unemployment rate and lower the October unemployment rate. C) raise the September unemployment rate and not change the October unemployment rate. D) classify him as out of the labor force in September. E) raise the September unemployment rate and the October unemployment rate.
Suppose First National Bank has $200 million of assets and $20 million of equity capital
If First National has a 2% return on assets (ROA), what is its return on equity (ROE)? Suppose First National's equity capital declines to $10 million, while its assets and ROA are unchanged. What is First National's ROE now?
If there is employment discrimination against minorities, this will cause the:
A. supply of their services to increase, and their wages to fall. B. demand for their services to decline, and their wages to fall. C. supply of their services to decline, and their wages to rise. D. demand for their services to decline, and their wages to rise.