An MPC value of less than 1.0 indicates that as income increases:
A. Consumption also increases, and by more than the increase in income
B. Consumption also increases, and at the same rate as the increase in income
C. Consumption will go in the opposite direction and decrease
D. Consumption also increases, though not as much as income
D. Consumption also increases, though not as much as income
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Suppose that in Southlandia, frictional unemployment is 2%, structural unemployment is 3%, and cyclical unemployment is 4%. What is the natural rate of unemployment in Southlandia?
a) 2% b) 3% c) 5% d) 9%
One of the shortcomings of the government's method of measuring unemployment tends to make the official unemployment rate an overestimate of the unemployment problem:
A) people working less than twenty hours a week are counted as unemployed. B) people seeking part-time jobs are counted as fully unemployed. C) people who have given up looking for work are counted as fully unemployed. D) "discouraged workers" aren't counted as unemployed.