In the graph showing an increase in the growth of the money supply, the natural rate of unemployment of the economy shown is ______.
a. 0 percent
b. 3 percent
c. 5 percent
d. 6 percent
c. 5 percent
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Discouraged workers and marginally attached workers are
A) counted as employed by the BLS but are not part of the labor force. B) counted as employed by the BLS and are part of the labor force. C) counted as unemployed by the BLS and are part of the labor force. D) not part of the labor force. E) counted as unemployed by the BLS but are not part of the labor force.
If the level of unemployment is above the natural rate of unemployment, it would be expected that:
a. the short-run Phillips curve will shift leftward, as inflationary expectations adjust. b. the inflation rate will increase c. the short-run Phillips curve will shift rightward, as inflationary expectations adjust. d. both b. and c.
Which type of economic system will produce the highest degree of allocative efficiency?
a. a perfectly competitive market system b. a purely command economic system c. a market system with limited price controls and price ceilings d. a command system with limited market activity for non-essentials
Milton Friedman argued that there
A) are two Phillips curves, a short-run one and a long-run one. B) are three Phillips curves, a short-run one, a long-run one, and one in stagflation. C) is one Phillips curve, and it is vertical. D) is one Phillips curve, and it is nearly flat or horizontal.