A trough in the business cycle:
a. The natural rate of unemployment is at a minimum point
b. Structural and frictional unemployment are at their highest levels
c. Employment and output reach their lowest levels
d. Cyclical unemployment is at a minimum point
c. Employment and output reach their lowest levels
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Figure 36-5
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Which of the graphs in Figure 36-5 are consistent with a depreciation of the U.S. dollar and an increase in net exports caused by a decrease in U.S. interest rates?
A. 1 B. 2 C. 3 D. 4
Investment is a(n) ____ and capital is a ____ variable.
A. physical; financial B. stock; flow C. asset; liability D. flow; stock
Of the alternative measures of the price level, _________ overcomes the bias of the CPI and is a better measure of the cost of living because it _________
A. GDP price index; uses a current basket B. PCE price index; uses a current basket of all consumption goods C. PCE price index excluding food and energy; is less volatile D. GDP price index; includes all goods and services bought by Americans
Coordination problems in large firms might lead to:
A. horizontal marginal cost curves. B. downward-sloping marginal cost curves. C. upward-sloping short-run average cost curves. D. upward-sloping long-run average cost curves.