Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent. Then cyclical unemployment is
A) 1 percent.
B) -1 percent.
C) 8 percent.
D) 0 percent.
B
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The incidence of a tax:
A. indicates how much of the tax burden is borne by suppliers. B. indicates how much of the tax burden is borne by consumers. C. indicates how much of the tax burden is borne by various market participants. D. depends upon the shape of the supply curve only.
The income effect refers to the ways in which a change in the price of a good alters the effective buying power of one's income
a. True b. False Indicate whether the statement is true or false
Simon Kuznets argues that changes in quantities of labor and capital account for:
a. decrease in economic growth. b. one tenth of the increase in economic growth. c. all of the increase in economic growth. d. most of the inflation in our economy.
Which of the following components are necessary parts of an economic hypothesis?
a. predictable; testable; changing circumstances b. reflection; historical accuracy; constant circumstances c. predictable; testable; constant circumstances d. reflection; historical accuracy; changing circumstances