When the economy is operating at its natural rate of unemployment, the frictional and structural unemployment rates must add up to zero
Indicate whether the statement is true or false
FALSE
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When the nominal interest rate falls, the opportunity cost of holding money
A) decreases and there is a movement downward along the demand for money curve. B) increases and there is a movement upward along the demand for money curve. C) decreases and the demand for money curve shifts rightward. D) increases and the demand for money curve shifts rightward. E) decreases and the demand for money curve shifts leftward.
Once people hear what the majority of individuals like them are doing, they are most likely going to choose:
A. something better, because they typically want to be special. B. something slightly worse, because they don't want to be taken advantage of. C. the same, because they typically don't like to be outliers. D. None of these is likely.
The difference between actual and potential GDP is called
A. an output gap. B. the output differential. C. a gap shortage. D. the output resistance.
Which of the following does not contribute to higher wages?
A. higher prices for the good being produced B. greater educational attainment by the labor force C. technological improvements D. reductions in demand for the good being produced