You took a summer job as a salesperson in a shoe store with the knowledge that you will either make $2,000 or $3,500 with probabilities 0.4 and 0.6 respectively. What is your expected income for the summer job?

If the people of Redland are expecting the central bank to conduct an expansionary monetary policy for several years, how will the long-run real interest rate in Redland be affected?

What will be an ideal response?

The unemployment rate is the

A) percentage of employed people that does not have a job. B) number of unemployed people. C) percentage of the working-age population that does not have a job. D) percentage of the labor force that does not have a job. E) percentage of the population that does not have a job.