Suppose the unemployment rate is 8 percent and the natural unemployment rate is 6 percent. If potential GDP is $8 trillion, using Okun's Law what does real GDP equal?
A) $8.32 trillion B) $8.00 trillion C) $8.16 trillion D) $7.68 trillion E) $7.84 trillion
D
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The rate at which future money must be discounted is known as the
A. rate of inflation. B. exposure rate. C. discount rate. D. time rate.
Policies that reduce the time it takes unemployed workers to find new jobs can reduce the economy's natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
The money multiplier:
A. Is equal to the required reserve ratio times transactions deposits. B. Gets larger as the required reserve ratio increases. C. Is the reciprocal of the required reserve ratio. D. Represents the lending capacity of an individual bank.
Under which of the following conditions would a profit-maximizing monopolist necessarily raise price?
A. If product demand was price-inelastic B. If marginal revenue was greater than marginal cost. C. If product demand was price-elastic. D. If marginal cost was greater than marginal revenue.