The average expected rate of return on most financial assets is the sum of the rates that compensate for:
A. nondiversifiable risk and time preference.
B. diversifiable risk and time preference.
C. nondiversifiable and diversifiable risk.
D. nondiversifiable and diversifiable risk, and time preference.
A. nondiversifiable risk and time preference.
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How would a negative real shock be represented in the AS/AD model?
A. As a leftward shift of the long-run aggregate supply curve that reduces growth and increases inflation. B. As a rightward shift of the long-run aggregate supply curve that reduces growth and increases inflation. C. As a leftward shift of the long-run aggregate supply curve that increases growth and reduces inflation. D. As a rightward shift of the long-run aggregate supply curve that increases growth and reduces inflation.
The unemployment rate equals the number of unemployed divided by the ________, all times 100
A) labor force B) total population C) number of employed D) working-age population