The natural rate of unemployment
a. is a temporary low rate that cannot be maintained.
b. is fixed; it cannot be altered by public policy.
c. is equal to the number of persons unemployed divided by the number in the labor force.
d. is the unemployment rate accompanying the economy's maximum sustainable rate of output.
D
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When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the
A) benefits of the candy bars to the desires he had for the candy bars. B) marginal benefits of the candy bars to the marginal costs of the candy bars. C) opportunity costs of the candy bars to the scarcity of the candy bars. D) benefits of the candy bars to the scarcity candy bars. E) self-interest to the social interest.
In the long run, a decrease in the money supply growth rate
a. reduces expected inflation so the long-run Phillips curve shifts left. b. reduces expected inflation so the short-run Phillips curve shifts left. c. Both A and B are correct. d. None of the above is correct.