As their relative riskiness ________, the expected return on corporate bonds ________ relative to the expected return on default-free bonds, everything else held constant

When the economy is operating at full employment, the natural unemployment rate consists of only

A) cyclical unemployment. B) frictional and structural unemployment. C) frictional and cyclical unemployment. D) structural and cyclical unemployment.

Refer to Figure 10-9. The change in the budget constraint from BC1 to BC2 implies

A) income and the prices of DVDs and CDs have increased. B) the price of DVDs has increased and the price of CDs has decreased. C) the prices of DVDs and CDs have increased. D) the price of DVDs has decreased and the price of CDs has increased.