If the economy were at its potential output level, which of the following is not true?
a. The actual unemployment rate would equal the natural rate.
b. There would be some cyclical unemployment.
c. There would be some frictional unemployment.
d. There would be some structural unemployment.
B
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Departures from stationarity
A) jeopardize forecasts and inference based on time series regression. B) occur often in cross-sectional data. C) can be made to have less severe consequences by using log-log specifications. D) cannot be fixed.
The price elasticity of supply is __________ elastic over time because ___________.
A. less; producers get accustomed to the price changes B. less; the ideal number of firms have time to move into or out of the industry C. more; producers have a longer time to adjust their production decisions D. more; producers get accustomed to the price changes
Which of the following countries has a long history of foreign trade and a high level of trade?
a. Brazil b. India c. Sweden d. United States
Quotas and tariffs provide the same outcome: restriction of international trade and higher prices for consumers.
Answer the following statement true (T) or false (F)