The natural rate of unemployment will help determine
A) the open economy effect.
B) the position of the long-run aggregate supply curve.
C) the level of economic growth in the economy.
D) low levels of inflation.
Answer: D) low levels of inflation.
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Lerner's view on debt financing is
A. Future generations bear a burden of external debt. B. Burden of debt can be transferred across generations. C. Internal debt creates no burden for the future generations. D. Government debt crowds-out the available funds for private sector.
What is the added factor that complicates an understanding of an individual’s labor supply curve?
a. wages b. hours c. salary d. leisure
When the Swiss franc appreciates relative to the dollar
A. it becomes less expensive in terms of the dollar. B. it takes fewer dollars to buy a Swiss franc. C. it takes more dollars to buy a Swiss franc. D. None of these statements are true.
A central proposition of the new growth theory is that
A) growth will cease but prosperity will persist. B) knowledge is not subject to diminishing returns. C) government direction and oversight is necessary for consistent growth. D) growth is often just an illusion fostered by growth accounting.