Which of the following about unemployment is true?
a. When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present.
b. Some unemployment will be present even when a dynamic labor market is operating efficiently.
c. When full employment is present, the rate of unemployment will be zero.
d. When full employment is present, there will not be any frictional unemployment.
e. When full employment is present, it will be impossible to sustain the current rate of output in the future.
B
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A new file cabinet will generate $300 in net revenue each year for a Data Storage Co The file cabinet has a useful life of two years. At the end of the second year, the cabinet will be sold as scrap metal for $200 . If the interest rate is 10 percent (0.10) per year, what is the present value of the file cabinet to Data Storage Co? (Assume that each year's revenue is received at the end of the
year.) a. $500 b. $600 c. $800 d. $1,000 e. none of the above
Which of the following statements is true?
A) When TP = TE (total production = total expenditures), the economy is necessarily producing Natural Real GDP. B) When TP is greater than TE, inventory levels unexpectedly fall. C) When TE is greater than TP, inventory levels unexpectedly rise. D) b and c E) none of the above
The present value of a dollar rises as
A. the interest rate declines and the number of years you wait for your money declines. B. the interest rate rises and the number of years you wait for your money rises. C. the interest rate declines and the number of years you wait for your money rises. D. the interest rate rises and the number of years you wait for your money declines.
Which of the following is a component of aggregate demand?
A. Consumption B. Investment C. Net exports D. All of these are components of aggregate demand.