The Natural rate of unemployment equals
a. The sum of the frictional and structural unemployment rates.
b. The sum of the frictional and cyclical unemployment rates.
c. The sum of the structural and cyclical unemployment rates.
d. None of the above.
a
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When the price level is rising at ______ and the real interest rate is 1 per-cent a year, the nominal interest rate is 3 percent a year
A. 4 percent a year B. 3 percent a year C. 2 percent a year D. 1 percent a year
International equilibrium occurs if the quantity of imports demanded by one country is equal to the quantity of exports supplied by the other country
a. True b. False Indicate whether the statement is true or false
One of the theories that explains oligopoly behavior is the kinked demand curve theory. The kinked demand curve
a. applies when competitors match price decreases but not price increases b. could apply to market demand in any market structure c. applies when competitors match price increases but not price decreases d. applies to the price leadership model e. applies when competitors act independently
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.