Which of the following statements is true of unemployment?
A) In periods of contraction, the unemployment rate in an economy decreases.
B) The unemployment rate in most of the developed nations in the world is zero percent.
C) In periods of expansion, the unemployment rate in an economy increases.
D) The rate of unemployment is positive in any well-functioning economy.
D
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The primary reason that short-lived shocks can have long-run effects is
A) the nonneutrality of money. B) misperceptions by the public over the actual price level and the expected price level. C) the presence of rational expectations among the public. D) the presence of propagation mechanisms.
Wheat is sold in world markets, usually priced in terms of bushels. In the market for wheat, the price elasticity of demand for wheat would be expressed as
A) the number of bushels of wheat sold. B) the number of whatever currency is used in purchasing the wheat. C) the number of dollars spent on wheat. D) a unitless number.
Figure 4-20
Refer to . The price that sellers receive after the tax is imposed is
a.
$8.
b.
$6.
c.
$5.
d.
$3.
Macroeconomics is concerned with studying the
A. prices of specific companies' stocks. B. wants of individual consumers. C. behavior of individual decision makers. D. performance of the economy as a whole.