Which of the following is a factor determining the natural rate of unemployment?
A. real GDP
B. the business cycle
C. demographics
D. the labor force participation rate
Answer: C
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If a company plots its total profit curve, it would show
A. that the curve has a negative slope over the entire range of output. B. that the slope of the curve is negative, then zero and then becomes positive as output increases. C. that the slope of the curve is positive, then zero and then becomes negative as output increases. D. that slope is a constant at a value of one.
"Crowding-out" occurs in the IS-LM model as rising government spending requires a ________ in the interest rate in order to ________ the demand for money at the new equilibrium, thus ________ planned private investment
A) rise, keep constant, lowering B) rise, raise, lowering C) rise, lower, raising D) fall, keep constant, raising E) fall, raise, lowering
Boundary setting refers to
A. managers requesting permission to ratify every decision made by an empowered worker. B. employees seeking approval for every decision from managers. C. workers setting up rules of empowerment that might influence their decision-making authority. D. managers preratifying certain decisions made by empowered workers within a certain range, while still maintaining supervisory control.
A bond with no expiration has an original price of $10,000 and a fixed annual interest payment of $1000. If the price of this bond increases by $2500, the interest rate in effect will:
A. Decrease by 1 percentage point B. Decrease by 2 percentage points C. Increase by 1 percentage point D. Increase by 2 percentage points