The longer the time frame of analysis, the easier it is to make adjustments in production by switching production methods and/or building or closing down production facilities
a. True
b. False
Indicate whether the statement is true or false
True
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When the economy moves into and out of recessions and expansions, the unemployment rate fluctuates around the
A) natural unemployment rate. B) structural unemployment rate. C) cyclical unemployment. D) frictional unemployment rate.
Which of the following statements is true about the Medicaid program?
a. Eligibility standards are uniform across states. b. The program is totally funded by federal tax revenues. c. Everyone in the poverty-level population is eligible for benefits. d. About 20% of total outlays are for nursing home and home health care for the elderly. e. All of the above are true.
Technology spillover is one type of
a. negative externality. b. positive externality. c. subsidy. d. producer surplus.
If the Federal Reserve is currently paying 1 percent interest on bank reserves, but then reduces that interest rate to 0.5 percent, banks may decide to hold ________ reserves, and the money supply may ________.
A. fewer; increase B. more; decrease C. more; increase D. fewer; decrease