If the Fed's policy reaction function equals r = .02 + p, where r is the real interest rate, p is the inflation rate. When the inflation rate is at the current target of 2%, then the real interest rate will be set at:

Marginal cost curves slope

A) upward because of increasing opportunity cost. B) upward because of decreasing opportunity cost. C) downward because of increasing opportunity cost. D) downward because of decreasing opportunity cost.

Unemployment that results when individuals who have voluntarily quite their jobs are seeking jobs is called

A) cyclical unemployment. B) turnover unemployment. C) mismatch unemployment. D) natural unemployment.