According to the classical model
A. unemployment only exists during periods of war.
B. the natural rate of unemployment is zero.
C. long-term unemployment is unavoidable.
D. unemployment is a temporary phenomenon.
Answer: D
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Other things remaining the same, as the real interest rate increases,
A) firms will borrow more funds. B) firms' demand for funds will not change. C) the demand for loanable funds curve shifts leftward. D) firms will purchase new capital with its own funds instead of taking a loan. E) firms will borrow less funds.
Network externalities
A) prevent the dominance of a market by one firm. B) are created when celebrity endorsements of products lead to a surge in the demand for those products. C) exist when the usefulness of a product increases with the number of consumers who use it. D) can only exist when there are economies of scale.
_____ allow an individual to buy a company's stock at a pre-determined price on or after a certain future date
a. Arbitrage b. Futures contracts c. Options d. Spot markets
Which of the following types of goods would least likely be classified as a government-inhibited good?
A. heroin B. tobacco C. marijuana D. soft drink