Which of the following 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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Holding all else constant, an increase in Mexican real GDP will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
Which of the following is true regarding utility along a price-consumption curve?
A) It is constant. B) It changes from point to point. C) It changes only if income changes. D) It changes only for normal goods.
The transcontinental railroads were completed in the 25 years
A. before the Civil War. B. after the Civil War. C. after 1890. D. after the 20th century began.
In Figure 1 above the Keynesian equilibrium occurs at what output level?
A. Y2 B. Y3 C. Y1 D. it does not occur at any output level in the graph.