The natural rate of unemployment exists when cyclical unemployment equals zero
a. True
b. False
Indicate whether the statement is true or false
True
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Who has a higher bargaining power if the demand for the good being transacted is price-elastic?
What will be an ideal response?
The Gini coefficient is measured by
A) summing up the total income earned by the population and dividing by the size of the population. B) summing up the cumulative income percentages on the Lorenz curve. C) using the formula: area between the line of perfect equality and the Lorenz curve ÷ the area under the line of perfect equality. D) using the formula: area between perfect inequality and Lorenz curve ÷ area between the line of perfect equality to the Lorenz curve.
An increase in the time to the promised future payment ________ the present value of the payment
A) decreases B) increases C) has no effect on D) is irrelevant to
After an oil price shock, which of the following would move unemployment back towards its natural rate?
a. the Fed sells bonds b. the government raises taxes c. the government increases expenditures d. All of the above are correct.