What is meant by the term "the natural rate of unemployment"?
What will be an ideal response?
The natural rate of unemployment is the level of unemployment at which there is no cyclical unemployment. It consists only of frictional and structural unemployment.
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If the cross elasticity of demand between goods X and Y is positive and between goods X and Z is negative, then X and Y are ________ and X and Z are ________
A) price inelastic; complements B) complements; substitutes C) substitutes; complements D) price inelastic; income elastic
When Fed policy is being used to offset an inflationary gap, which of interest rates, investment, net exports and aggregate demand moves in the opposite direction from the others? a. Aggregate demand. b. Investment
c. Net Exports. d. Interest rates.
The demand-for-money curve illustrates the __________ relationship between the quantity demanded of money and __________
A) inverse; the interest rate B) direct; GDP. C) direct; the interest rate D) inverse; GDP
Edward Denison identified which of the following as the main source of productivity growth in the United States between 1929 and 1982?
A. added labor and capital B. the increase in labor's education and training C. advances in knowledge obtained through research and development D. the improved quality of corporate management