Refer to the above figure. Suppose the economy is at C. If the government tried to reduce the unemployment rate to 3 percent, the new long-run outcome will be at point
A) A.
B) C.
C) D.
D) H.
D
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Using trade restrictions to protect special interests such as the U.S. auto industry
A) results in lower prices for U.S. auto consumers. B) raises the prices that U.S. consumers must pay for autos. C) is a very cost-efficient way of dealing with trade problems. D) is the best long-term solution for threatened U.S. jobs.
A monopolist is a price searcher because it has the ability to select the price along its demand curve of its product
a. True b. False Indicate whether the statement is true or false
Government policies designed to increase the skills of the work force shift the labor demand curve to the right, increasing employment and total output
a. True b. False