Keynesians prefer a disinflation policy of

The population is 1,000 million, the labor force is 750 million, and the number of unemployed is 30 million. What is the unemployment rate?

A) 4 percent B) 3 percent C) 10 percent D) 7.5 percent

Black markets can occur when price ceilings are imposed in a market. Which of the following explains why sellers participate in a black market?

A) Sellers are able to sell the product for a higher than legal price. B) There are more buyers in the black market than in the legal market. C) The demand is perfectly elastic in a black market. D) The demand is perfectly inelastic in a black market. E) The surplus in the legal market means that many sellers can sell their product in the black market.