When the unemployment rate is ________ the natural unemployment rate, real GDP is ________
A) above; increasing
B) above; above potential GDP
C) below; above potential GDP
D) below; increasing
E) equal to; either equal to potential GDP or above potential GDP
C
You might also like to view...
When having a choice of which estimator to use with a binary dependent variable, use
A) probit or logit depending on which method is easiest to use in the software package at hand. B) probit for extreme values of X and the linear probability model for values in between. C) OLS (linear probability model) since it is easier to interpret. D) the estimation method which results in estimates closest to your prior expectations.
During the Great Depression, the economist who raised the loudest objections against the classical model was
a. Milton Friedman b. John Nash c. Adam Smith d. Ben Bernanke e. John Maynard Keynes
Albert Einstein once referred to compounding as
a. "an obsession among economists that defies explanation.". b. "the greatest mathematical discovery of all time.". c. his own discovery. d. John Maynard Keynes's greatest contribution.
For an investor who starts with dollars and wants to end up with dollars in the future, which of the following choices is an example that includes hedging?
A. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and then, buy dollars at the future spot rate B. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy the foreign currency C. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy dollars D. Buy a dollar-denominated financial asset