What fraction of the labor force is cyclically unemployed when structural unemployment is 2 percent, frictional unemployment is 2.5 percent, seasonal unemployment is 1 percent, and the overall unemployment rate is 8 percent?
a. 2.5 percent
b. 13.5 percent
c. 4.5 percent
d. 5.5 percent
e. 8.0 percent
A
You might also like to view...
Employing Figure 4-1 above, if Y increases by 3000 and the interest rate is fixed at 5% then the sensitivity of real money balances to changes in real income is
A) 0.67. B) 0.33. C) -0.67. D) -0.33.
The U.S. experience during the 1980s and 1990s illustrates that
a. fiscal policy is substantially more potent than monetary policy. b. a balanced budget is essential for the achievement of price stability. c. a monetary policy that keeps the inflation rate low and steady will help promote economic stability. d. there is a trade-off between inflation and unemployment-the unemployment rate can be reduced if we are willing to tolerate higher rates of inflation.
Which of the following is the best example of what happens when an equilibrium point is reached?
A. A store that sells its televisions for $999 lowers its price to 899 B. All the stores in a city are selling a certain model of television for 899$ C. some customers decide $899 is too high ad buiy a lower-cost television D. The number of tellevision available at $899 is the same as the number of sales
If all firms in an industry are price-takers, then:
What will be an ideal response?