Suppose the natural rate of unemployment is 6 percent. What is the actual rate of unemployment if actual output is 2 percent below potential output?
A. 4 percent
B. 8 percent
C. 10 percent
D. 7 percent
Answer: D
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As output rises, ________ will continue to fall.
A. average fixed costs B. average total costs C. marginal costs D. average variable costs
Barriers to entry are forces that:
A. promote a more efficient allocation of resources across the economy. B. limit the government from intervening in markets. C. limit consumers from purchasing new products. D. limit new firms from joining an industry.
Population growth in the early nineteenth century was slow due to the lack of immigration
Indicate whether the statement is true or false
An income tax will have zero welfare cost when an individuals labor supply curve is perfectly inelastic _____
a. always b. never c. only if the income effect is zero d. only if the substitution effect is zero