If the unemployment rate increases from 10% to 14%, the economy will
A. move away from the ppf toward the origin.
B. remain on the ppf.
C. remain on the origin.
D. move closer to a point on the ppf.
Answer: A
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At the profit-maximizing level of output for a pure monopoly ________.
A. price is less than marginal cost B. total revenue is greater than total cost C. price is equal to marginal cost D. price is greater than marginal cost
A country reports exports minus imports of $300 billion, net interest income of $30 billion, net transfers of $50 billion, and no change in official reserves. The country is a
A) net liability. B) net borrower. C) net lender. D) debtor nation. E) net asset.
If planned investment changes as interest rates change, then
A) autonomous consumption changes. B) autonomous investment changes. C) total expenditures and output changes. D) the marginal leakage rate changes.
Complements are characterized by:
A. negative cross-price elasticity of demand. B. positive cross-price elasticity of demand. C. cross-price elasticity of demand equal to zero. D. cross price elasticity of demand equal to -1.