How does the natural unemployment rate change and what factors might make it change?
What will be an ideal response?
Changes in the natural unemployment rate arise because of changes in frictional and structural unemployment. Any factor that changes frictional unemployment or structural unemployment changes the natural unemployment rate. For instance, a change in the age distribution of the population, a change in the scale of structural changes that are occurring, a change in the minimum wage rate or efficiency wages, or a change in unemployment benefits all change the natural unemployment rate.
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The demand curve facing the monopolistically competitive firm is:
A. flat. B. vertical. C. U-shaped. D. None of these statements is true.
An inefficient use of resources can be illustrated using a production possibilities curve as: a. a movement to the northeast along the curve
b. a movement to the southeast along the curve. c. a movement off the curve in a northeast direction. d. a movement off the curve in a southwest direction.
To increase the money supply, the Fed could
a. sell government bonds. b. auction more loans to banks. c. increase the reserve requirement. d. None of the above is correct.
An increase in capital stock would
What will be an ideal response?