the economics of money, banking, and financial markets

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3. 
   

   Economists believe the natural rate of unemployment is approximately ____ percent.
   A) seven
   B) six
   C) five
   D) four
   Answer: A
   Diff: 1 Type: MC Page Ref: 576
   Skill: Recall
   Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
   of aggregate output and the inflation rate

   
   


4. 
   

   Some unemployment is always present due to the ____ and ____ components,
   which are greater than zero.
   A) frictional; structural
   B) frictional; cyclical
   C) structural; cyclical
   D) unvoluntary; frictional
   Answer: A
   Diff: 1 Type: MC Page Ref: 576
   Skill: Recall
   Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
   of aggregate output and the inflation rate

   
   


5. 
   

   The total quantity of final goods and services offered for sale at different price levels is
   ____.
   A) the aggregate supply curve
   B) the aggregate demand curve
   C) the 45° line
   D) Both A and D of the above.
   Answer: A
   Diff: 1 Type: MC Page Ref: 575
   Skill: Recall
   Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
   of aggregate output and the inflation rate

   
   


6. 
   

   The long-run rate of unemployment to which an economy always gravitates is the ____.
   A) normal rate of unemployment
   B) natural rate of unemployment
   C) neutral rate of unemployment
   D) inflationary rate of unemployment
   Answer: B
   Diff: 2 Type: MC Page Ref: 576
   Skill: Recall
   Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
   of aggregate output and the inflation rate