Suppose the measured unemployment rate is 7.4% and the natural rate of unemployment is 5.1%. In this situation, policymakers should
A) attempt to stimulate the economy.
B) attempt to slow the economy.
C) not intervene in the economy.
D) The actions of policymakers will depend on how much of the natural rate is frictional unemployment and how much is structural unemployment.
A
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Which of the following theories predicts that current consumption increases when a person expects an increase in future income?
A) the life-cycle theory of consumption B) the Keynesian theory of consumption C) the permanent income hypothesis D) all of the above
The "tragedy of the commons" refers to the phenomenon where
A) there is rivalry in consumption. B) people overuse a common resource. C) people do not internalize an externality. D) individuals are free riders.
Over a twenty-five year period, about half of the merger acquisitions are split up
Indicate whether the statement is true or false
________are the owners of a corporation
A) The board of directors B) Stockholders C) Top management D) Bondholders