The absence of cyclical unemployment means the economy is at the natural unemployment rate
Indicate whether the statement is true or false
TRUE
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If wealth ________, then saving increases, which is shown by a ________
A) decreases; rightward shift of the supply of loanable funds curve B) decreases; movement downward along the supply of loanable funds curve C) increases; rightward shift of the supply of loanable funds curve D) increases; leftward shift of the supply of loanable funds curve E) increases; movement upward along the supply of loanable funds curve
Refer to the scenario above. A change in the probability of breakdown to 10 percent will:
A) increase the net present value to $135.65. B) lead to a negative net present value. C) decrease the net present value to $16.02. D) decrease the net present value to $10.
Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
a. A decrease in aggregate supply. b. An increase in aggregate supply. c. A decrease in aggregate demand. d. An increase in aggregate demand.
A bond's internal rate of return is also known as its:
A. coupon. B. payback period. C. duration. D. yield to maturity.