Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 22, Problem 6MCQ
To determine
The scenario where the value of real
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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.
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 GDP
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.
Chapter 22 Solutions
Foundations of Economics (8th Edition)
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