EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 22, Problem 6MCQ
To determine
The scenario where the value of real
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
An economy is said to achieve “full employment” when:
a. The unemployment rate is equal to zero.
b. The unemployment is equal to the cyclical plus frictional unemployment.
c. The unemployment is equal to the frictional plus structural unemployment.
d. The unemployment is equal to the cyclical plus structural unemployment.
Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the following is true?
a.
The economy has a full employment.
b.
Cyclical unemployment is negative.
c.
Frictional unemployment becomes zero.
d.
The economy is in recession.
If some employed workers exit the labor force, the unemployment rate will be ______
Knowledge Booster
Similar questions
- Which of the below is true about the above case? a. The natural rate of unemployment is above the actual rate of unemployment b. The cyclical rate of unemployment is greater than zero c. There is an inflationary output gap d. There is a recessionary output gap e. there is a recession f. actual GDP is greater than the potential GDParrow_forwardCyclical unemployment -------is unemployment caused by a recession. As output (GDP) is increasing, the amount of cyclical unemployment would ▼-----------arrow_forwardWhich of the following statements is TRUE? a. the unemployment rate does not tell anything about the duration of unemployment. b. the duration of unemployment increases during economic expansions. c. the duration of unemployment decreases during recessions. d. both A and B are correct.arrow_forward
- When an economy is operating in a negative output gap (Recessionary Gap) which of the following must be true? a. Unemployment is less than full employment b. Employment is greater than full employment c. Employment is equal to Natural rate of unemployment d. Unemployment is greather than the Natural rate of Unemployment.arrow_forwardThe normal rate of unemployment that persists in the economy in the long run is called a. frictional unemployment. b. structural unemployment. c. cyclical unemployment. d. the natural rate of unemployment.arrow_forward5 10. The natural rate of unemployment in an economy is estimated at 3%. The current unemployment rate is 4%. Is the economy producing more than potential real GDP, less than potential real GDP, or exactly real GDP? Explain your answer.arrow_forward
- If the number of people in the labor force is 170 million and 155 million people are employed, then the unemployment rate is __________ percent.arrow_forwardWhen an economy is operating in a positive output gap (Inflationary Gap) which of the following must be true? a. Unemployment is less than full employment b. Employment is less than full employment c. Employment is equal to full employment d. Unemployment is greater than the Natural rate of Unemploymentarrow_forwardHow does an increase in the minimum wage affect unemployment levels in a perfectly competitive labor market? A. It has no effect on unemployment levels. B. It decreases unemployment levels. C. It increases unemployment levels. D. It initially increases but eventually decreases unemployment levels.arrow_forward
- The unemployment which is in excess of the NAIRU is called _____. A.seasonal unemployment B.frictional unemployment C.structural unemployment D.hidden unemployment E.cyclical unemploymentarrow_forwardA mild period of falling incomes and rising unemployment is called a: A mild period of falling incomes and rising unemployment is called a: A. business cycle B. boom C. recession D. depressionarrow_forwardAt a business cycle trough, cyclical unemployment is A. high; zero B. zero; low C. negative; positive D. positive; negative and at a business cycle peak, cyclical unemployment isarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
