Which of the following about unemployment is true?
a. Frictional unemployment implies a lack of available jobs.
b. During a recession, cyclical unemployment will be low.
c. When an economy is at full employment, actual unemployment will be less than the natural rate of unemployment.
d. When actual GDP equals potential GDP, the actual unemployment rate will equal the economy's natural rate of unemployment.
D
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If a good has a price elasticity of demand of -3, it implies that:
A) if the income of the consumer increases by 3%, the quantity demanded of that good will increase by 1%. B) if the income of the consumer increases by 1%, the quantity demanded of that good will increase by 3%. C) if the price of the good increases by 1%, the quantity demanded of the good will decrease by 3%. D) if the price of the good increases by 3%, the quantity demanded of the good will increase by 1%.
Imperfect policy credibility implies that
A) traders may not believe that a central bank will do what it says. B) a central bank may intentionally undermine its policies. C) central bank authorities cannot be trusted. D) currency traders will often try to undermine central bank movements.
If a firm wished to maximize total revenues, it should produce where:
a. marginal cost is zero. b. marginal revenue is zero. c. marginal revenue is equal to marginal cost. d. marginal revenue is equal to price.
Added expenditures in the circular flow that are not paid for out of domestic resource income are known as
a. leakages. b. injections. c. imports. d. infusions.