The frictional unemployment rate is 2.5 percent, the structural unemployment rate is 3.1 percent, and the economy's current unemployment rate is 5.6 percent. The economy is in
A) an inflationary gap producing more than Natural Real GDP.
B) a recessionary gap producing more than Natural Real GDP.
C) an inflationary gap producing Natural Real GDP.
D) a recessionary gap producing less than Natural Real GDP.
E) long-run equilibrium.
E
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As chief financial officer you sell newly issued bonds on behalf of your firm. Your firm is
a. borrowing directly. b. borrowing indirectly. c. lending directly. d. lending indirectly.
A country imports $20 billion worth of goods and services and exports $15 billion worth of goods and services. What is its net capital outflow?
a. $5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets b. $5 billion, so foreigners' purchases of domestic assets exceed its resident's purchases of foreign assets c. -$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets d. -$5 billion, so foreigners' purchases of domestic assets exceed its residents' purchases of foreign assets