When the economy is at full employment,
A) 100 percent of the labor force is employed.
B) there is no structural or cyclical unemployment.
C) there is no cyclical unemployment.
D) there is only frictional unemployment.
E) the natural unemployment rate equals zero.
C
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If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
A) 1%. B) 2%. C) 3%. D) 4%.
Financial institutions that cut back on their lending are engaged in ________
A) liability management B) deleveraging C) financial innovation D) torsion control
What is the difference between comparative advantage and absolute advantage?
What will be an ideal response?
The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $10, and can hire labor at a wage of $5. Capital is fixed at 25 units. The profit-maximizing quantity of labor is:
A. 1. B. 10. C. 2. D. None of the answers are correct.