Which of the following statements is true?
A) As an economy experiences growth in GDP, the rate of unemployment is expected to decrease.
B) As an economy experiences growth in GDP, the rate of unemployment is expected to increase.
C) The unemployment rate in a country always remains constant.
D) The unemployment rate in a country is not correlated with the level of economic activity in the country.
Answer: A) As an economy experiences growth in GDP, the rate of unemployment is expected to decrease.
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In nations where conventional taxes are difficult to collect, the inflation tax is ________, which tends to ________ the inflation rates of those nations
A) also difficult to collect, aggravate B) also difficult to collect, hold down C) a realistic alternative, aggravate D) a realistic alternative, hold down
Refer to the above figure. If the economy is currently operating at point C, then there is
A) a stable long-run equilibrium situation. B) a recessionary gap. C) an inflationary gap. D) unemployment.
What is the future value of $800 one year from today if the interest rate is 7 percent?
a. $747.66 b. $756.00 c. $856.00 d. None of the above are correct to the nearest cent.
The competitive market price of a good
A. is equal to the value consumers place on the last unit they purchased. B. must reflect both the value to consumers and cost to producers. C. must exceed the cost of producing an extra unit of the good. D. must be less than what consumers are willing to pay for an additional unit of the good.