The natural rate of unemployment:
A. Means that the economy will always operate at that rate
B. Means that the economy will always realize its potential output
C. Is equal to the total of frictional and structural unemployment
D. Is a fixed unemployment rate that does not change over time
C. Is equal to the total of frictional and structural unemployment
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The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices. Does this information reflect the law of supply? Why or why not?
What will be an ideal response?
The Securities and Exchange Commission is
A. responsible for regulating U.S. commercial banks. B. responsible for enforcing antitrust law. C. responsible for monitoring the activities of U.S. stock markets. D. responsible for monitoring currency exchanges.
The major economic problem is to:
a. provide for full employment. b. eliminate scarcity. c. increase the standard of living. d. allocate limited resources among unlimited uses. e. increase leisure.
Suppose there is a decrease in short-run aggregate supply. If the Federal Reserve wants to stabilize output it should
a. buy bonds. These purchases also move the price level closer to its original level. b. buy bonds. However these purchases move the price level farther from its original level. c. sell bonds. These purchases also move the price level closer to its original level. d. sell bonds. However these purchase move the price level farther from its original level.