The natural rate of unemployment
a. increases sharply during a recession but declines significantly during a business expansion.
b. is the unemployment rate accompanying the economy's maximum sustainable output.
c. is generally less than the unemployment rate associated with the economy's full-employment rate of output.
d. is present when the economy operates at approximately 94 percent of its potential GDP.
B
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Assume that the graph below describes the current labor market for nurses in a mid-sized city and that the labor market is perfectly competitive.
If supply shifts from S0 to S1 and demand shifts from D0 to D1, then
A. wages will have to rise to $60 to avoid a nursing shortage. B. a wage of $50 will lead to an excess supply of nurses. C. a wage of $40 will be sufficient to achieve equilibrium. D. wages will have to rise to $50 to avoid a nursing shortage.
A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production. B) that the trade-off between the 2 goods is not constant. C) changing technology. D) only 1 good is always being produced.
If the average propensity to save (APS) is 0.40, then this means
A. people are spending 40 percent of their disposable income. B. people are spending 60 percent of their amount of saving. C. people are saving 40 percent of their amount of consumption. D. people are saving 40 percent of their disposable income.
The table above gives a nation's government outlays and tax revenues for 2012 through 2016. During which years did the country have a budget surplus?
A. 2012 and 2013 B. 2016 only C. 2015 only D. 2014 and 2016 E. all except 2015