The observed unemployment rate is less than the natural rate of unemployment if:
a. the inflation rate is lower than expected.
b. the reservation wage is adjusted to account for higher inflation.
c. real wage increases with increase in prices.
d. reservation wages go up with the rate of inflation.
e. the inflation rate is higher than expected.
e
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When the government's outlays exceed its tax revenue, the national debt
A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) shrinks thanks to the budget deficit. D) grows to finance the budget surplus. E) does not change because it has nothing to do with government outlays and tax revenue.
One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries
A) factor endowments B) scale of production C) factor intensities D) technology E) opportunity costs