The business cycle may hamper economic growth because it creates additional ________ for business owners.
A. unemployment
B. stability
C. risks
D. inflation
Answer: C
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When the economy is at its natural rate of unemployment,
A) it is still experiencing frictional and cyclical unemployment. B) it is still experiencing structural and cyclical unemployment. C) it is still experiencing frictional, seasonal, and structural unemployment. D) it is still experiencing frictional, structural, and cyclical unemployment.
The Keynesian region of the aggregate supply curve is:
a. horizontal. b. downward-sloping. c. upward-sloping. d. vertical. e. a 45-degree line.
Which of the following is the most likely reason for a coffee seller to change the price of coffee from P1 to P2?
a. The demand for decaf coffee increased.
b. The coffee crop reached the expected yield.
c. Ideal weather created a high yield of coffee.
d. Insects reduced the coffee yield.
Consider the case of a U.S. investor holding dollars and deciding whether to invest in Japanese treasury bills or in U.S. treasury bills. Assume that the investor wants to end up holding dollars. What are the three methods available to this investor to turn present dollars into future dollars? In your answer present an equation that shows the return per dollar invested under each method. Which of these methods is the riskiest and why?
What will be an ideal response?