Which statement is true?
A. During very bad recessions and depressions the total of our frictional and structural unemployment rates is greater than our cyclical unemployment rate.
B. When our overall unemployment rate declines, most of this decline is due to falling structural and frictional unemployment.
C. Cyclical unemployment is generally zero.
D. The sum of the frictional and structural unemployment rates is 5 percent.
D. The sum of the frictional and structural unemployment rates is 5 percent.
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The asset demand for money is related to which function of money?
A) standard of deferred payment B) store of value C) medium of exchange D) unit of accounting
The smaller the amount saved out of a change in disposable income, the
A) more horizontal the consumption function. B) larger the MPC. C) more net taxes affect consumption. D) smaller is autonomous consumption. E) smaller the MPC.
Suppose the corn-producing industry of the U.S. is a price taker in the world market and government puts a ban on imports. The corn industry also receives subsidy from the home government. Then
A) social welfare will increase if the ban on imports is removed. B) everyone will be better off if both ban on imports and subsidy are removed. C) social efficiency will be improved if both ban on imports and subsidy are removed. D) the deadweight loss is reduced if subsidy is removed.
The long run for the industry is defined as a period of time long enough for
A. any new firm that desires to enter the industry. B. any old firm that desires to leave the industry. C. all aspects of production to vary and there are no fixed costs. D. All of the responses are correct.