At the full employment level of output, the natural rate of unemployment for the U.S. is estimated to be between;
a. 1.0% and 1.5%
b. 5.0% and 6.5%
c. 2.0% and 3.0%
Answer: b. 5.0% and 6.5%
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In terms of unemployment, hysteresis models try to explain why
a. cyclical unemployment is always present. b. structural unemployment cannot be eradicated. c. high unemployment persists even after its initial cause is long past. d. frictional unemployment is the cause of hysteresis.
When a monopolist is able to sell its product at different prices to different customers, it is likely engaging in: a. quality-adjusted pricing. b. price discrimination
c. price differentiation. d. illegal activities.
When the economy is operating at an output beyond its full-employment potential, the
a. actual level of unemployment will exceed the natural rate of unemployment. b. actual level of unemployment will equal the natural rate of unemployment. c. strong demand for resources will place upward pressure on resource prices. d. aggregate demand will increase until full employment is restored.
A change in the unit of measurement of the dependent variable in a model does not lead to a change in:
A. the standard error of the regression. B. the sum of squared residuals of the regression. C. the goodness-of-fit of the regression. D. the confidence intervals of the regression.