Suppose Canada has a population of 30 million people and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 2 million people, what can we conclude about Canada's economy?
A. There is no frictional unemployment present in the economy.
B. The unemployment rate is above the natural rate of unemployment.
C. The unemployment rate is below the natural rate of unemployment.
D. There is no cyclical unemployment present in the economy.
Answer: B
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i. shift in ii. change in the slope of iii. movement along A) i only B) ii only C) iii only D) i and ii E) i and iii
The figure above illustrates a linear demand curve. If the price falls from $8 to $6
A) total revenue increases. B) total revenue decreases. C) total revenue remains unchanged. D) the quantity demanded increases by less than 20 percent.
What is an advantage of a command economy?
a. basic services such as healthcare can be provided to all citizens b. innovation and new ideas result in great wealth for entrepreneurs c. starvation is impossible d. the production of consumer goods is a top economic priority
In an economy with a fixed exchange rate, an increased demand for foreign goods would increase the supply of local currency, and the government would have to buy:
A. foreign currency in the foreign exchange market to prevent the domestic currency from depreciating. B. foreign currency in the foreign exchange market to prevent the domestic currency from appreciating. C. local currency in the foreign-exchange market to prevent the currency from depreciating. D. local currency in the foreign-exchange market to prevent the currency from appreciating.