If the rate of job finding rises, the natural rate of unemployment will:
A. remain constant.
B. increase.
C. decrease.
D. rise or decline, depending on the rate of job separation.
Ans: C. decrease.
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For an individual LM curve, the money supply is assumed to
A) be constant. B) grow at a rate equal to the interest rate. C) grow at a rate equal to the growth rate in income. D) grow at a rate equal to the marginal propensity to consume.
In a simple closed economy, the income approach to calculating GDP is:
A. wages + interest + rental income + profits. B. wages + interest + government income + profits C. wages + government earned interest + rental income + profits D. wages + interest + rental income profits.
The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to beAVC = 88 - 0.026Q + 0.000003Q2Greene Enterprises faces total fixed costs (TFC) of $300,000. If Greene Enterprises produces 6,000 units of output, what is estimated short-run marginal cost (SMC)?
A. $62.40 B. $83 C. $45.60 D. $92 E. $100
The main avenue by which a temporary change in government purchases in the classical model affects the labor supply is by
A. affecting the value of the stock market. B. affecting workers' wealth. C. increasing business confidence. D. changing the population.