Unemployment caused by a contraction in the economy is called:
a. frictional unemployment.
b. cyclical unemployment

We need to study a model in which real and nominal variables interact in order to understand how the economy works

a) in the short run but not the long run. b) without regards to any time period, whether the short run or the long run. c) in both the short run and the long run. d) in the long run but not the short run.

An economy's PPC illustrates the extent to which the economy consumes what it produces

a. True b. False Indicate whether the statement is true or false