Using the Keynesian aggregate expenditures model, which of the following is true?
a. Macro equilibrium may occur at levels of real GDP other than full-employment real GDP.
b. At any macro equilibrium, the actual rate of unemployment must equal the natural rate of unemployment.
c. If an economy is operating below full employment capacity, the Keynesian model indicates that lower wage rates will automatically adjust the economy back to full employment.
d. All of these are correct.
a
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Jordan recently quit her job as a marketing consultant in Washington, D.C. and is looking for a better-paying job with an advertising agency in New York. Jordan is considered to be
A) cyclically unemployed. B) structurally unemployed. C) not in the labor force. D) frictionally unemployed. E) a discouraged worker.
According to your text, who among the following have a comparative advantage in providing information that reduce transaction costs?
A) The consumer B) The bureaucrat C) The middleman D) The career politician