When the rate of cyclical unemployment is zero, the:
A. natural rate of unemployment must also be zero.
B. rate of frictional unemployment must be negative.
C. economy must have entered a recessionary stage.
D. economy is considered to be at full employment.
Answer: D
You might also like to view...
Monetarists consider timing variations in the relationship between money supply changes and income changes to be
A) a fundamental problem of counter-cyclical monetary policy. B) inconsequential relative to the problem of instability in the velocity of money. C) a fundamental long-run problem but not a significant problem in the short run. D) offset by predictable changes in the money multiplier.
We worry that false negatives occur too often relative to false positives due to
a. Most hypotheses being false b. It being appropriate to set a high standard for acceptance of a hypothesis c. Managers having an incentive to make a false negative conclusion because they are harder for superiors to observe d. They are not too common