If the cyclical rate of employment equals ?2 percent and the actual rate of unemployment equals 8 percent, then the natural rate of unemployment must equal:
A. ?6 percent.
B. 0 percent.
C. 10 percent.
D. 2 percent.
Answer: C
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If a perfectly competitive firm raised the price of its product,
A) its profits would increase. B) the quantity of output it sells decreases to zero. C) rival firms will follow suit and raise their prices also. D) the firm will be forced to advertise more. E) its total revenue would rise but its total cost would rise by more.
An IOU that promises to pay a certain amount at maturity, and also to pay periodic fixed amounts until that date, is called a(n)
A. stock. B. equity. C. bond. D. futures contract.
Which factor could contribute to a firm experiencing economies of scale?
A. The law of diminishing marginal returns B. Deterioration of information and control within a firm C. A rising long-run average total cost D. Productivity gains from more specialized labor
Contractionary fiscal policy is deliberate government action to influence aggregate demand and the level of real GDP through:
A. expanding and contracting the money supply. B. encouraging business to expand or contract investment. C. regulating net exports. D. decreasing government spending or increasing taxes.