If the current unemployment rate is less than the natural unemployment rate, then the economy is
A) in long-run equilibrium.
B) in an inflationary gap.
C) in a recessionary gap.
D) producing at full employment.
E) b and d
B
You might also like to view...
If the required reserve ratio is 0.2, and a bank has $100 million in demand deposits and $40 million in property and buildings, it must hold reserves of at least
a. $28 million b. $20 million c. $26 million d. $12 million e. $8 million
To take full advantage of earning compound interest income you should start saving
A) after you have purchased the nice car you have always wanted. B) as soon as you get a higher paying job. C) three years from now. D) now.
Along the supply? curve, _______.
A. the quantity supplied increases as the price rises because technology advances B. the quantity supplied increases as the price rises because the prices of factors of production rise C. the quantity supplied increases as the price rises because the prices of substitutes in production also rise D. the price changes but all other influences on? producers' planned sales remain the same
Imagine that the federal government increases the minimum wage over the 2014 level. How would this action affect the graph?
a. WMIN would go lower, thereby increasing the labor surplus.
b. WMIN would go lower, thereby decreasing the labor surplus.
c. WMIN would go higher, thereby increasing the labor surplus.
d. WMIN would go higher, thereby decreasing the labor surplus.