One reason college students do not study enough to get high grades is that they are unrealistic about their future behavior
Indicate whether the statement is true or false
TRUE
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The natural rate of unemployment
A. means that the economy will always operate at that rate. B. is a fixed unemployment rate that does not change over time. C. means that the economy will always realize its potential output. D. is equal to the total of frictional and structural unemployment.
If the demand for jelly decreases, and the price of grapes (used to make jelly) rises
A) the equilibrium price of jelly falls and the equilibrium quantity of jelly might rise or fall. B) the equilibrium price of jelly rises and the equilibrium quantity of jelly might rise or fall. C) the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly falls. D) the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly rises.
If the actual capital stock exceeds the desired capital stock due to a cycle of overbuilding, then
A) net investment will fall dramatically. B) net investment will increase dramatically. C) net investment will not change. D) the effect on net investment is unknown.
According to the Taylor rule, when inflation and/or output is above its target, then:
a. the federal funds rate must be negative. b. the federal funds rate must be above its target. c. the federal funds rate must be above inflation. d. none of the above are correct.