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 1.4 million people, what can we conclude about Canada's economy?
A. The unemployment rate is above the natural rate of unemployment.
B. The unemployment rate is below the natural rate of unemployment.
C. There is cyclical unemployment present in the economy.
D. There is no cyclical unemployment present in the economy.
Answer: D
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If the economy is producing a level of output $45 billion above full-employment real GDP, the most viable option to shift the output to full-employment GDP would be a
A. tax cut of $45 billion. B. tax increase of some amount less than $45 billion. C. tax increase of some amount greater than $45 billion. D. tax increase of $45 billion.
The nation is divided into ________ Federal Reserve districts, each having a Federal Reserve Bank
A) 10 B) 50 C) 12 D) 7
Many argue that the "soft power" of the U.S. has been reduced, referring to its
a. negotiating ability. b. military presence. c. export level. d. moral leadership.
A budget surplus
a. occurs when the government has debt equal to zero. b. causes government debt to increase. c. exists when government spending is greater than tax revenues. d. reduces the government's debt.