How does the natural unemployment rate change and what factors might make it change?
What will be an ideal response?
Changes in the natural unemployment rate arise because of changes in frictional and structural unemployment. Any factor that changes frictional unemployment or structural unemployment changes the natural unemployment rate. For instance, a change in the age distribution of the population, a change in the scale of structural changes that are occurring, a change in the minimum wage rate or efficiency wages, or a change in unemployment benefits all change the natural unemployment rate.
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A firm has excess capacity if its output is
A) less than the quantity at which marginal cost is minimized. B) less than the quantity at which economic profit is maximized. C) less than the quantity at which average total cost is minimized. D) more than the quantity at which average total cost is minimized.
Income received minus personal taxes is called:
a. national income. b. personal income. c. disposable personal income. d. transfer payments. e. net national product.