The natural rate hypothesis states that
A) it is natural for the unemployment rate to be less than the natural unemployment rate.
B) changes in the inflation rate temporarily change the natural unemployment rate.
C) it is natural for the unemployment rate to exceed the inflation rate.
D) only natural economic policies can bring a permanent reduction in the unemployment rate.
E) changes in the inflation rate temporarily change the unemployment rate.
E
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Suppose a nation's real Gross Domestic Product (GDP) grows at a rate of 2 percent per year while its population grows 2 percent annually. Given this information, this nation's annual rate of per capita real GDP growth is equal to
A) 1 percent. B) -1 percent. C) 0 percent. D) 4 percent.
McDonalds kept its U.S.-based menu when entering the Chinese market
Indicate whether the statement is true or false
If a firm is experiencing diminishing marginal returns to labor, which of the following must be true?
a. The first workers the firm hired were better than the workers hired later on. b. The firm is experiencing decreasing returns to scale. c. The positive effect of specialization in production is being offset by the negative effect of crowding of inputs. d. Output is decreasing. e. The firm should buy more nonlabor inputs.
In the article on China holding $4 trillion in dollars, for every dollar it holds in reserves, it prints
A. 6.5 fewer yuan for the domestic money supply. B. 10 additional yuan for the domestic money supply. C. 10 fewer yuan for the domestic money supply. D. 6.5 additional yuan for the domestic money supply.