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Historical data show that during the recession of 1990 − 1991, the natural rate of unemployment was about 5.9 percent while the actual rate of unemployment was 7.0 percent. A decade later, during the 2001 recession, the natural rate of unemployment had fallen to 4.8 percent while actual unemployment was 6.0 percent. Which of the following statements is correct regarding these two short recessions? The actual unemployment rate was higher during the recession of 1990-1991, but cyclical unemployment was higher in 2001. Both the actual unemployment rate and cyclical unemployment were higher in 2001. The actual unemployment rate was higher in 2001, but cyclical unemployment was higher from 1990-1991. Both the actual unemployment rate and cyclical unemployment were higher during the recession of 1990-1991.
LED light bulbs use only 20 to 25 percent of the energy used by traditional incandescent bulbs. Even if all consumers replace their old bulbs by the LED bulbs, do we expect that the arrival of LED light bulbs will decrease energy consumption for ligh..
An aircraft company has signed a contract to sell a plane for $20 million. The firm buying the plane will pay for it in five annual payments (at year end) of $4 million. If the firm's cost of capital is six percent, what is the net present value of t..
Describe the four types of regional trading agreements discussed in class and show how each type creates a greater and greater level of economic integration. Using the European Union as your example, describe the challenges associated with the variou..
What is the function, as well as what are the main ingredients as well as connections within the policy planning network doing off describes.
What are some advantages to using a nontraditional online businesses? What information should you look for when reading an ad or hearing a commercial? How can spending plan help you make smart shopping decisions? Describe the major differences betwee..
An appraiser valued a subsidiary of signal co. at between $230 million and $260 million. Six months later, Burmah Oil offered to buy the subsidiary at $480 million, giving Signal only three days to respond. Members of the board were sophisticated, w..
What is the linear relationship between Fahrenheit and Celsius? Since the relationship is linear, you only need the following two points to calculate the relationship.
An analysis of the stock market produces the following information about the returns of two stocks.
Evaluate the relative importance of economies of scale and comparative advantage in causing the following.
Suppose that Florida adopts a new state policy in which the government compensates orange farmers for all fixed costs, but the policy does not affect their variable costs of producing oranges. The graphs below show the costs faced by individual orang..
Tom is a mushroom farmer. He invests all his spare cash in additional mushrooms, which grow on otherwise useless land behind his barn. The mushrooms triple in weight during their first year, after which time they are harvested and sold at a constant ..
Which of the following is a positive economic? statement? Suppose the U.S. government encouraged consumers to trade in their old automobiles for more? efficient, new models by paying up to? $5,000 for the old automobiles. These consumers would be exe..
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