Any policy change that reduced the natural rate of unemployment
a. would shift the long-run Phillips curve to the right.
b. would shift the long-run aggregate-supply curve to the right.
c. would be a policy change that impeded the functioning of the labor market.
d. All of the above are correct.
b
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By the third quarter of 2011, U.S. households had accumulated $6.2 trillion in housing equity, which represents about 11 percent of their net worth. What proportion of U.S. households own their home?
A. one-third B. one-half C. two-thirds D. three-fourths
Curly just graduated from State U and has three job offers: teaching at a prestigious private high school nine months a year with summers off, working forty hours a week at a bank in a small city, and working more than sixty hours a week for a high-powered investment firm in New York. Suppose all of the jobs paid exactly the same annual salary, and that most people prefer leisure to work, all else equal. If that were the case:
A. people would naturally sort themselves into the job that best suits their talents. B. there would be a surplus of workers at the investment firm. C. there would be a surplus of teachers at the high school. D. there would be a shortage of teachers at the high school.
The Federal Reserve kept interest rates low from 2002 through 2016 because they:
A. wanted to follow the Taylor Rule. B. were worried about inflation creeping into the economy. C. wanted to reduce the value of the dollar and help domestic exporters. D. wanted to avoid deflation and the resulting recession.
The present value analysis of the death penalty
A. shows that the death penalty is not cost effective in its punishment and economists almost universally reject it for that reason. B. shows that the death penalty is quite cost effective in its punishment, though for a variety of reasons, economists are split on the wisdom of the policy. C. shows that the death penalty is not cost effective in its punishment, though for a variety of reasons, economists are split on the wisdom of the policy. D. shows that the death penalty is quite cost effective in its punishment and economists almost universally embrace it for that reason.