One determinant of the long-run average unemployment rate is the
a. market power of unions, while the inflation rate depends primarily upon government spending.
b. minimum wage, while the inflation rate depends primarily upon the money supply growth rate.
c. rate of growth of the money supply, while the inflation rate depends primarily upon the market power of unions.
d. existence of efficiency wages, while the inflation rate depends primarily upon the extent to which firms are competitive.
b
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The Bank Act of 1935 restructured the Federal Reserve System (FRS) in which of the following ways?
(a) The FRS Board of Governors gained discretionary control over bank reserves and margin requirements for loans against securities. (b) The Governor's Committee was renamed the Federal Open Market which was comprised of 12 members, 7 of whom were governors on the FRS Board. (c) The secretary of the U.S. Treasury and comptroller of currency were removed from the FRS Board. (d) All of the above
The difference between GNP and NNP is equal to:
a. the statistical discrepancy in calculation. b. the capital consumption allowance. c. the transfer payments. d. the value of net exports. e. the change in inventory.