When there is no cyclical unemployment, the overall rate of unemployment is ____ percent.
Fill in the blank(s) with the appropriate word(s).
Answer: 5
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If one economic agent possesses more information than their fellow transactor ________
A) economic transactions cannot occur B) the moral hazard problem has been eliminated C) the adverse section problem has been eliminated D) asymmetric information exists
Consider borrowers and lenders who agree to loans with fixed nominal interest rates. If inflation is higher than what the borrowers and lenders expected, then who benefits from lower real interest rates?
a. Only the borrowers benefit. b. Only the lenders benefit. c. Both borrowers and lenders benefit. d. Neither borrowers nor lenders.
The recessionary phase of the business cycle is characterized by
a. decreasing real output and increasing unemployment. b. decreasing real output and declining unemployment. c. increasing real output and increasing unemployment. d. increasing real output and declining unemployment.
If the world price of a good is greater than the domestic price in a country that can engage in international trade, then that country becomes an importer of that good
a. True b. False Indicate whether the statement is true or false