Suppose the measured unemployment rate is 3.9% and the natural rate of unemployment is 5.1%. In this situation, policymakers should
A) attempt to stimulate the economy.
B) attempt to slow the economy.
C) not intervene in the economy.
D) The actions of policymakers will depend on how much of the natural rate is frictional unemployment and how much is structural unemployment.
B
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M1 includes
A) currency, checking deposits and traveler's checks. B) money, stocks and bonds. C) money, checking deposits and traveler's checks. D) money market mutual funds, stocks and bonds.
The beginnings of the New York Stock Exchange can be traced back to a small group of men who bought and sold stock in New York in
A. 1792. B. 1866. C. 1892. D. 1929.
Firm A owns produces both toothpaste and toothbrushes. In order to increase profits the firm must
a. Increase prices for both toothbrushes and toothpaste b. Decrease prices for both toothbrushes and toothpaste c. Increase prices on toothbrushes and increase the price on toothpaste d. Increase prices on toothbrushes but keep the price on toothpaste constant
If variable cost rises from $60 to $100 as output increases from 15 to 20 units, the marginal cost of the twentieth unit
a. is $100 b. is $5 c. is $40 d. is $8 e. cannot be determined without total cost