Cyclical unemployment in an economy will be zero when:
a. there is an expansionary gap in the economy
b. the economy is producing its natural rate of output.
c. there is a recessionary gap in the economy.
d. the actual price level is equal to the expected price level in the economy.
e. the actual price level exceeds the expected price level in the economy.
b
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According to the text, studies of 18th century colonial demographics indicate that, compared to Europe,
a. the birthrate in the colonies was lower. b. women in the colonies tended to marry later in life. c. the child mortality rate in the colonies was lower. d. average life expectancy for males in the colonies was lower. e. All of the above.
The money created by the banking system when deposits in one bank result in deposits in other banks by way of the bank loan process tends to decrease the banking system's volatility
Indicate whether the statement is true or false