Suppose the natural rate of unemployment is 4 percent. What is the actual rate of unemployment if actual output is 2 percent above potential output?
A. 3 percent
B. 6 percent
C. 2 percent
D. 0 percent
Answer: A
You might also like to view...
To maximize overall profit in peak-load pricing, managers must determine ________ capacity that maximizes ________ season profit.
A) long-run; peak- B) short-run; peak- C) long-run; off-peak D) short-run; off-peak
If the Fed wanted to use all three of its major monetary control tools to decrease the money supply, it would:
A. buy bonds, reduce the discount rate, and reduce reserve requirements. B. sell bonds, reduce the discount rate, and reduce reserve requirements. C. sell bonds, increase the discount rate, and increase reserve requirements. D. buy bonds, increase the discount rate, and increase reserve requirements.
Intermediate goods are goods that are used up entirely in the production of final goods. As such, intermediate goods
A. are included in Gross Domestic Product (GDP) only if produced within the borders of the United States. B. make up only a small portion of Gross Domestic Product (GDP). C. are excluded in calculating Gross Domestic Product (GDP) because they are not valuable. D. are excluded in calculating Gross Domestic Product (GDP) because to do so would be to double count them.
When people over 16 years old start looking for jobs, the
A. Unemployment rate increases and the labor force increases. B. Unemployment rate increases and the labor force decreases. C. Unemployment rate decreases and the labor force increases. D. Unemployment rate decreases and the labor force decreases.