The full-employment unemployment rate for the United States economy is now generally considered to be:
a. 5 percent of the labor force
b. 2 percent of the labor force
c. 0 percent of the labor force
d. 3 percent of the labor force
a. 5 percent of the labor force
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What are the four categories used to group spending for the expenditure approach?
a. depreciation, investment, government purchases, net imports b. consumption, investment, government purchases, net exports c. depreciation, investment, taxes, net imports d. consumption, investment, taxes, net exports
Refer to the figure. Assuming this market is representative of the economy as a whole, a negative demand shock will most likely:
A. cause inflation.
B. increase unemployment.
C. lower prices but leave output unaffected.
D. reduce both prices and output.
The recessions associated with the business cycle come at regular intervals
a. True b. False Indicate whether the statement is true or false
Buddy has $2000 in a checking account and wants to buy a new MacBook for $1100. Buddy decides he needs the money in his account to pay his bills next month and so puts the $1100 on his credit card and pays it off gradually over the next several months. Buddy choosing to "save" his cash on hand for everyday expenses is:
A. rational, since Buddy can now pay all his bills with a small credit card payment each month. B. going to make Buddy wealthier in the long run. C. rational, since he has his new computer and has money in the bank. D. irrational, since money is fungible.