The Federal Reserve lowers interest rates. As a result, in the short run, real GDP ________ and the price level ________
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
A
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Memory of the supply shocks of the 1970s ________ the growth of real-business-cycle theory, while it was being ________ by new classical work on model-building methods
A) assisted, assisted as well B) assisted, hindered C) hindered, assisted D) hindered, hindered as well
Which of the following examples is NOT a negative stock externality?
A) Goodwill generated by a company B) Noise pollution from an airport C) Odors emitted from a paper mill D) None of these cases are examples of negative stock externalities
Which of the following is the most likely outcome of minimum wage laws?
a. an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms b. an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms c. a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms d. a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 9.4 percent B) 11.1 percent C) 5.6 percent D) 8.3 percent E) none of the above