Full employment means
A) zero unemployment.
B) only cyclical unemployment exists.
C) only frictional and structural unemployment exists.
D) None of the above answers are correct.
C
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The starting point for understanding how exchange rates are determined is a simple idea called ________, which states: if two countries produce an identical good, the price of the good should be the same throughout the world no matter which country
produces it. A) Gresham's law B) the law of one price C) purchasing power parity D) arbitrage
In the case of an increase in government spending where the price level varies while the money wage is fixed, output
a. rises and prices fall by more than if the price level was fixed. b. falls and price rise by more than if the price level was fixed. c. rises by more and the price level rises by less than if the price level was fixed. d. and the price level are fixed. e. rises and prices fall by more than if the price level was fixed.