If the NAIRU was 4.8% in 2002 and the actual unemployment rate was 5.8%, what percentage of the labor force could have been put to work without exerting upward pressure on inflation?
A. 1%
B. 5.3%
C. 1.2%
D. 10.6%
Answer: A
You might also like to view...
A new toll road was built in Southern California between San Juan Capistrano and Costa Mesa. On average, drivers save 10 minutes taking this road as opposed to the old road. The toll is $2; the fine for not paying the toll is $76
The probability of catching and fining someone who does not pay the toll is 90%. Individuals who take the road and pay the toll must therefore value 10 minutes at a minimum A) between $1.80 and $68.40. B) between $2 and $68.40. C) $1.80. D) between $1.80 and $76. E) more than $76.
What a buyer pays for a unit of a specific good or service is called:
a. debit. b. MSRP. c. cost. d. price.
Supply-side economists advocate
A. A reduction in the incentives to save so that more income will be spent. B. An increase in transfer payments. C. The use of minimum wage laws to guarantee fair wages for workers. D. A reduction in structural unemployment through worker training.
Which of the following is NOT a possible cause of structural unemployment?
A. individuals take the time to search for the best job opportunities B. a mismatch of worker training and skills with requirements of employers C. union activity that sets wages above the equilibrium level D. government-imposed minimum wage laws