If the natural rate of unemployment equals 6 percent and the actual rate of unemployment equals 5 percent, then cyclical unemployment equals:
A. ?1.2 percent.
B. -1 percent.
C. 1 percent.
D. 11 percent.
Answer: B
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The income per worker of a country increases if ________
A) the number of children in the country aged below 15 increases B) the country's GDP increases, all other variables remaining constant C) the number of retired people in the country increases D) the country's GDP falls, all other variables remaining constant
A decrease in money demand will shift the
A) IS curve to the left. B) IS curve to the right. C) LM curve to the left. D) LM curve to the right.
Personal income can never be greater than national income
Indicate whether the statement is true or false
When the economy slows down:
A. firms contract their operations. B. GDP growth is slowing or negative. C. demand for workers decreases. D. All of these are true.