When real GDP is below natural real GDP, the unemployment rate is
A) rising.
B) above the average unemployment rate.
C) falling.
D) below the average unemployment rate.
A
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Under the gold standard system, if the par exchange rate is $1 = 2 pounds, but the market exchange rate in the United Kingdom is $1 = 1 pound, then a person interested in arbitrage would:
A) buy dollars in the United Kingdom to be shipped to the United States and exchanged for a larger quantity of gold. B) find that it is not possible to engage in arbitrage. C) convert dollars into pounds in the United States and sell it for gold in the United Kingdom. D) lose money by trying to exploit any price difference.
The baby boomers born in the 1940s and 1950s began entering the work force in the 1960s and 1970s
This demographic event ________ the natural unemployment rate, thereby shifting the short-run Phillips curve ________ and shifting the long-run Phillips curve ________. A) increased; rightward; leftward B) decreased; rightward; rightward C) increased; rightward; rightward D) decreased; leftward; leftward E) increased; leftward; rightward