In a dynamic economy under ideal conditions,
a. the unemployment rate should be near zero.
b. some unemployment would be present due to workers temporarily being out of work while changing jobs.
c. unemployment would tend to move upward slightly as prices increased.
d. unemployment would tend to move slightly downward as unemployment compensation benefits increased.
B
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The set of all assets that are regularly used to directly purchase goods and services is called:
A. money. B. consumption income. C. disposable income. D. fungible goods.
In the long run, equilibrium positions that arise in both monopolistically competitive and perfectly competitive markets are
A) MR = MC and P = MC. B) P = ATC and P = MC. C) MR = MC and P = ATC. D) MR = MC = P.
The proponents of ________ and ________ think that the Federal Reserve should adopt a constant monetary growth rule
A) new Keynesianism; the new classical model B) the real business cycle model; Marxism C) rational expectations; monetarism D) the monetarist model; the Keynesian model
Since 1994, the average annual inflation rate in the U.S. has been greater than 8 percent.
Answer the following statement true (T) or false (F)