Which of the following best describes the notion of full employment?
(a) Less than 5% of the labour force is unemployed;
(b) The current level of employment that is sustainable;
(c) Employment and unemployment are at their "natural" rates;
(d) All of the above could describe it.
Answer: (a) Less than 5% of the labour force is unemployed;
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The actual income distribution might be more equal than current official figures suggest because current official figures ignore the return on human capital
Indicate whether the statement is true or false
Refer to Table 19-28. Based on the table above, what is national income for this economy?
A) $1,950 billion B) $2,250 billion C) $2,950 billion D) $3,550 billion
The assertion that the median voter is "king" refers directly to the result established by the
a. Arrow impossibility theorem. b. Condorcet paradox. c. median voter theorem. d. Borda mechanism.