Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered
A) cyclically unemployed.
B) avoidably unemployed.
C) frictionally unemployed.
D) a discouraged worker.
E) not in the labor force because she moved more than 150 miles.
C
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In the early 1970s monetary growth was relatively stable yet unemployment and prices were quite unstable. This suggests that
A) policy activism is superior to policy rules. B) government spending must have been destabilizing. C) monetary rules will not iron out every short-run fluctuation resulting from shocks. D) the government was following a monetary rule.
Macroeconomic forecasting is made more difficult due to the fact that
A) deviations from trend in real GDP are persistent. B) turning points are hard to predict. C) there is no regularity in comovements. D) consumption is smooth.