Frictional unemployment is inevitable because the economy is always changing
a. True
b. False
Indicate whether the statement is true or false
True
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A minimum wage law
A) lowers the wage rate of workers who are able to get a job. B) increases employment. C) increases the time spent searching by workers who cannot find a job. D) creates efficiency in the labor market. E) must be set below the equilibrium wage rate in order to have an impact.
The stages of a business cycle, in order, are
a. expansion, contraction, recession, and boom. b. contraction, recession, expansion, and boom. c. boom, expansion, contraction, and recession. d. recession, contraction, expansion, and boom.
Refer to Figure 36.5 for the dollar-euro foreign exchange market with the market exchange rate at P1. The European Union (EU) and U.S. governments have agreed on a fixed exchange rate of P2. This situation
A. Causes an excess demand for euros. B. Causes a balance-of-payments deficit for the EU. C. Calls for an expansionary fiscal policy in the EU. D. Requires that the EU buy U.S. dollars.
Monetary policy refers to the actions the Federal Reserve takes to manage
A) the money supply and income tax rates to pursue its economic objectives. B) the money supply and interest rates to pursue its economic objectives. C) income tax rates and interest rates to pursue its economic objectives. D) government spending and income tax rates to pursue its economic objectives.