If the economy is self-regulating and current Real GDP is less than Natural Real GDP, the economy is operating __________ the natural unemployment rate and wages will __________
A) below; soon rise
B) above; soon rise
C) below; soon fall
D) above; remain unchanged
E) none of the above
E
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Which of the following is not an example of a "workfare" component in a welfare program?
a. job skill training b. required job searches c. tougher child support laws d. required work in paid or unpaid jobs e. required participation in training programs
Wages in excess of their equilibrium level help explain
a. structural unemployment but not the natural rate of unemployment. b. the natural rate of unemployment but not structural unemployment. c. both structural unemployment and the natural rate of unemployment. d. neither structural unemployment nor the natural rate of unemployment.
What is supply-side economics? What is the rationale for it? Is it effective?
What will be an ideal response?
You use $45,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate is 8%, you earn an economic profit of
A. -$900. B. $100. C. $500. D. $900.