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1. What is the natural rate of unemployment?
a. The level of unemployment due only to frictional and structural unemployment rather than cyclical unemployment
b. When there is no unemployment in the economy
c. The level of unemployment that keeps the economy growing
d. None of these
2. What is the effect of an open market sale on the Federal Funds rate?
a. It causes it to rise
b. It causes it to fall
c. It does not affect the Federal funds Rates
d. It is uncertain
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Assume labor market demand is given by: lD = 10 – w and labor market supply by: lS = w – 2. Suppose that a union has a monopoly in the supply of labor. Suppose also that the goal it has decided to pursue is to maximize the wage bill. In this case, wh..
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What is the solution for the manager of Collinis Import Autos believes the number of cars sold in a day (Q)depends on two factors.
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What effect will a $30 billion decrease in autonomous investment have on total expenditures if the MPC is 0.9? What happens to the level of national income in an economy with an MPC of 0.8 and if autonomous consumption increases by $20 billion, auton..
If Intel was manufacturing chips in the United States that were exported to China to be made into cell phones for the Chinese market, but now is building a chip manufacturing plant in China to provide chips to make cell phones in China for the Chines..
Describe in 100 words or less the condition of “full employment” and explain why, even under the conditions of full employment, there is still a percentage of the labor force who are not working.
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