Compared to the natural rate of unemployment, the actual unemployment rate is
A) always lower.
B) always higher.
C) always the same.
D) higher in periods when GDP fails to grow at its normal rate.
D
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An AIDS epidemic hurts an economy by
a. requiring additional expenditures on health care b. reducing the working-age population c. increasing the child mortality rate d. reducing the growth of output e. all of the above
Suppose that a rare virus infects and kills a significant percentage of the population. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners?
a. Both wages and rents would increase. b. Both wages and rents would decrease. c. Wages would increase, and rents would decrease. d. Wages would decrease, and rents would increase.
In the short run for a particular market, there are 300 firms. Each firm has a marginal cost of $30 when it produces 200 units of output. $30 is above every firm's average variable cost. One point on the market supply curve is
a. quantity = 300; price = $30. b. quantity = 600,000 . price = $90,000. c. quantity = 100,000 . price = $30. d. quantity = 60,000 . price = $30.
In a decreasing-cost industry, an increase in industry output will
A) lead to a higher market price. B) lead to a lower market price. C) shift each firm's average fixed cost curve up. D) shift each firm's short run supply curve up.