The longer the unemployment rate remains above the natural rate, the higher the natural rate. This theory is known as historical analysis

A good would not be very suitable to use as money if it

a. is portable because it is needed as a store of value b. is divisible because each unit of money should have the same value c. is scarce because we need more money as the economy grows d. is commonly accepted as a medium of exchange because everyone will hoard it e. lacks uniformity because the money supply would be of varying quality and people will hoard the preferred money and circulate only the less preferred

From a psychological point of view, could we talk ourselves out of a recession simply by having business and government leaders express optimistic statements?

What will be an ideal response?