Social cost is the sum of private cost and

When analyzing the complete model, which can predict short-run and long-run changes in the exchange rate, one must:

a. start with short-run changes and move toward long-run changes, and thereby determine expectations. b. use only the long-run model because the short-run model is largely irrelevant. c. start with the long-run equilibrium positions where expectations of future exchange rates can be determined, and use those expectations to feed into the short-run model. d. use the short-run model only, because the long run is only a theoretical concept.

Full employment occurs when the

A) cyclical unemployment rate equals the natural unemployment rate. B) structural unemployment rate equals zero. C) unemployment rate equals the natural unemployment rate. D) natural unemployment rate equals the frictional unemployment rate. E) structural unemployment rate equals the frictional unemployment rate.