The natural rate of unemployment is the rate of unemployment
A) that occurs when the money market is in equilibrium.
B) that occurs when the markup of prices over costs is zero.
C) where the markup of prices over costs is equal to its historical value.
D) that occurs when both the goods and financial markets are in equilibrium.
E) none of the above
E
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Which of the following statements accurately describes the two measures of the money supply?
A) The two measures do not move together, so they cannot be used interchangeably by policymakers. B) The two measures' movements closely parallel each other, even on a month-to-month basis. C) Short-run movements in the money supply are extremely reliable. D) M2 is the narrowest measure the Fed reports.
Jim has estimated elasticity of demand for gasoline to be 0.7 in the short-run and 1.8 in the long run. A decrease in taxes on gasoline would:
a. lower tax revenue in both the short and long run. b. raise tax revenue in both the short and long run. c. raise tax revenue in the short run but lower tax revenue in the long run. d. lower tax revenue in the short run but raise tax revenue in the long run.