What is the definition of the natural rate of unemployment?
What will be an ideal response?
The natural rate of employment is the rate at which inflation is more or less stable, and is expressed as the nonaccelerating inflation rate of unemployment (NAIRU). It is a key indicator of how hot the economy can run without pushing up inflation.
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If velocity does not change and the quantity of money grows at the same rate as does real GDP, then in the long run
A) the real interest rate is less than the nominal interest rate. B) the inflation rate equals zero. C) the nominal interest rate equals zero. D) the inflation rate equals the growth rate of the quantity of money. E) the nominal interest rate is less than the real interest rate.
What is the price elasticity of demand for a vertical demand curve?
a. Inelastic, but not perfectly inelastic b. Perfectly elastic c. Unitary elastic d. Perfectly inelastic e. Elastic, but not perfectly elastic
Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?
Distinguish between macroeconomics and microeconomics
What will be an ideal response?