Since World War II the labor force participation rate (LPR)
Answer(s): B
Since 1948 the labor force participation rate for women has steadily increased while the rate for men has been declining. This suggests that the composition of work force participation within the family has changed substantially during the last five decades.
To the extent that people eventually adjust to demand stimulus policies, persistent expansionary macropolicy will lead to
Answer(s): C
Correctly anticipated inflation will result in persistent, though consistent, inflation with no effect on unemployment since there will be no effect on the real wage.
Which of the following is true?
Answer(s): D
GNP measures the productive value generated by the labor and capital owned by the citizens of a country, regardless of whether those citizens and assets reside within the country or out of it. Hence, while calculating GNP, the income generated by foreign nationals residing in the country as well as by assets owned by foreign nationals is excluded. On the other hand, GDP measures the productive activity within the country, regardless of who produces it.
When the economy is in short-run equilibrium below potential output, then
Answer(s): A
An equilibrium below potential output implies that demand for labor and other resources is weak. This implies that the actual rate of unemployment will be greater than the natural rate since the natural rate prevails when the economy is operating at full employment.
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