Some of the promising approaches to reducing the natural rate of unemployment have to do with education, training, and job placement. What implementation problems do you anticipate?
Training and placement programs sometimes look better on paper than they look in practice. In some cases, people are trained for jobs that do not exist by the time they finish their training?if, indeed, the jobs ever existed.
The high cost of these programs restricts the number of workers who can be accommodated, even in successful programs. For this reason, publicly supported job training is done on a very small scale in the United States?much less than in most European countries. Small expenditures can hardly be expected to make a large dent in the natural rate of unemployment.
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Assume the United States is the "domestic" country and China is the "foreign" country. Which of the following might increase the real exchange rate between the United States and China?
A) an increase in the price level in the United States. B) an increase in the price level of China C) a depreciation of the dollar D) an appreciation of the yuan
In the one-period valuation model, an increase in the required return on investments in equity
A) increases the expected sales price of a stock. B) increases the current price of a stock. C) reduces the expected sales price of a stock. D) reduces the current price of a stock.
If a Pigovian tax is levied on consumers, the demand curve will shift:
A. straight up, decreasing quantity. B. straight down, decreasing quantity. C. straight down, increasing quantity. D. straight up, increasing quantity.
As the housing market took off in the early 2000s:
A. household debt became positive for the first time since the Great Depression. B. the growth in household debt slowed. C. the growth in household debt accelerated. D. household debt became negative for the first time since the Great Depression.