An assumption that makes an economic model simpler without affecting its conclusions in important ways is
a. an indication of a positive assumption
b. an efficient assumption
c. useful in disguising the valid conclusions
d. a simplifying assumption
e. a critical assumption
D
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Find the size of the civilian labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000
a. 1,425 b. 1,450 c. 1,500 d. 1,525 e. 2,000
The "dual mandate" refers to the:
A. twin responsibilities of the Federal Reserve, to use monetary policy to ensure price stability and maintain full employment. B. orders given to both the Federal Reserve and the Treasury department to ensure price stability. C. responsibility given to the Federal Reserve and the Congress to conduct monetary and fiscal policy respectively, to ensure price stability. D. role that the Fed has by being a governmental agency but also must act in the best interest of all citizens of the United States.