Which of the following would increase the natural rate of unemployment?
A) an increase in the number of younger, less skilled workers in the economy
B) a reduction in the generosity of unemployment insurance programs
C) an increase in government-sponsored programs that train unemployed workers so they can find new jobs quickly
D) restrictions on the ability of unions to negotiate wage changes with companies
A
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The production possibilities frontier represents all desirable combinations of outputs
a. True b. False
If the economy is in a recession, in an effort to move the economy to the long-run equilibrium, the government could:
A. increase spending to increase aggregate demand. B. decrease spending to decrease aggregate demand. C. increase spending to decrease aggregate demand. D. decrease spending to increase aggregate demand.
The change in aggregate demand that results from fiscal expansion changing the interest rate is called the
a. multiplier effect. b. crowding-out effect. c. accelerator effect. d. Ricardian equivalence effect.
A firm can sell 14 units at $18, but to sell 15 units, the firm must cut the price to $17. The marginal revenue derived from selling the 15th unit is
A. -$18. B. 0. C. $3. D. $17.