Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the unemployment rate is approximately:
A. 4.2 percent.
B. 6.1 percent.
C. 7.5 percent.
D. 8.0 percent.
Answer: C
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As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies,
A) the M2 money multiplier has fallen from about 9 to about 4. B) the M2 money multiplier more than doubled. C) the monetary base decreased by 50 percent. D) the ratio of currency to M2 deposits more than doubled. E) the reserve requirement ratio increased.
Banks may hold the reserves for their customers' deposits as
A. cash in their bank vaults only. B. deposits at the Fed only. C. either cash in their vaults or their deposits at the Fed. D. Federal Reserve Notes.
Economic discrimination occurs when equivalent factors of production receive different payments for equal contributions to output.
Answer the following statement true (T) or false (F)
Refer to the accompanying figure.
Based on the figure, if autonomous spending increases from 400 to 600, then the new short-run equilibrium output will equal:
A. 600. B. 800. C. 1,200. D. 400.