Income inequality increases as the Gini coefficient approaches 1
Indicate whether the statement is true or false
TRUE
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Discuss how the age composition of the labor force and other demographic and social factors can cause the natural rate of unemployment to vary over time. For 2012, economists at the Congressional Budget Office have estimated a natural rate of 5.5%.
What will be an ideal response?
When part of the quantity of money is held in currency, then
A) a currency drain occurs. B) there is a higher level of excess reserves. C) the money multiplier will increase in value. D) the Fed will find it beneficial to increase the discount rate.
The Coase Theorem is the proposition that if the number of involved parties is low, if property rights ________ and transactions costs are ________, then private transactions are efficient
A) are nonexistent; low B) exist; high C) are nonexistent; high D) exist; low
Steady-state investment per worker is positively related to the capital—labor ratio because the higher the capital—labor ratio
A) the lower the capital depreciation rate. B) the greater the amount of resources available for capital investment. C) the more investment per worker is required to replace depreciating capital. D) the less the economy needs to equip new workers with the same high level of capital.