A headline states: "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment?
a. Structural
b. Cyclical
c. Natural
d. Frictional
b. Cyclical
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When U.S. official reserves ________, the official settlements account balance becomes negative and when U.S. official reserves ________, the official settlements account balance becomes positive
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease E) More information is needed about the balances on the current account and the capital account in order to answer this question.
Behavioral economics is an approach to the study of consumer behavior
A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making. B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources. C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption. D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.
Mark has $2000 saved for a trip at Spring Break. Over Winter Break, he decide to buy gifts for his family and puts over $500 on his credit card which charges 10% interest on the outstanding balance every month. He pays off the credit card bill gradually over the next two months. An economist would categorize that behavior as:
A. rational. B. irrational. C. misallocated. D. scarce.
The long-run aggregate supply (LRAS) curve is
A) horizontal. B) vertical. C) positively sloped. D) negatively sloped.