What factors can cause the natural rate of unemployment to change?
What will be an ideal response?
The key factors are demographics (including changes in the age, gender, and race of the population), public policy (including changes in unemployment insurance, and laws governing the labor market), sectoral shifts (including growth and decline in different industries and changes in where industries locate), and technological change including the introduction of new products that displace old products and increases in labor productivity.
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Pete feeds his dog 100 percent more Pup-Peronis when Zuke's treats increase in price by 50 percent. For Pete, Pup-Peronis and Zuke's are ________ and the cross-price elasticity of demand is ________
A) complements; -1/2 B) substitutes; 2 C) substitutes; -2 D) complements; 2 E) substitutes; 1/2
Refer to the scenario above. If Maria's opportunity cost of time increases to $80 per hour, the cost of driving to destination A is:
A) $480. B) $730. C) $800. D) $970.
Corn is used to produce tortillas. If the price of corn increases:
A. the demand for tortillas increases. B. the demand for tortillas decreases. C. the supply of tortillas increases. D. the supply of tortillas decreases.
Equity finance is represented by which of the following?
A) when a firm borrows money from banks B) when a firm sells bonds C) when a firm sells shares of stock D) when a firm draws down retained earnings E) when a firm sells off part of its capital stock