"Full employment":
a. Means that everyone who is searching for a job has one.
b. Occurs when there is 0% unemployment.
c. Occurs when the labor force participation rate equals the employment rate.
d. Occurs when there is 0% cyclical unemployment.
.D
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Are the short-run and long-run average cost curves U-shaped for the same reason? Explain
What will be an ideal response?
The curve showing the short-run relationship between the unemployment rate and the inflation rate is called
A) the Phillips curve. B) the monetary policy curve. C) the unemployment curve. D) the Sargent curve.
What is true only at the output level where price equals average total cost?
a. Marginal cost equals marginal revenue. b. Profit is maximized. c. Losses are minimized. d. Profit is zero. e. Cost is minimized.
Keynesian economists believed that the prolonged unemployment of the 1930s was the result of
a. the sharp reduction in the supply of money during 1929-1933 and another monetary contraction in 1938. b. the high interest rates of the 1930s. c. the double-digit inflation of the 1930s. d. insufficient aggregate demand and the failure of market forces to direct the economy back to full employment.