The normal level of unemployment that persists in an economy in the long run is:
A. called the natural rate of unemployment.
B. also called the equilibrium rate of underemployment.
C. zero when the market is equilibrium.
D. always achieved in the real world.
A. called the natural rate of unemployment.
Economics
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Suppose that M = 300, P = 150, and Y = 6. Then the velocity of circulation equals
A) 0.02. B) 0.50. C) 2.00. D) 3.00.
Economics
One reason why the government may not choose to close a recessionary gap by raising both taxes and spending and thereby keeping the budget balanced is because it
a. leaves undone the problem of unemployment b. can create inflation c. may involve raising taxes too high for political comfort d. eventually leads to deficit budgets e. does not impact on aggregate demand which is where the problem lies
Economics