Author Question: Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 ... (Read 152 times)

tuffie · **on:** Jun 29, 2018

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent. Then cyclical unemployment is

A) 1 percent.
B) -1 percent.
C) 8 percent.
D) 0 percent.

Question 2

A good with a vertical demand curve has a price elasticity of demand that ________.

A) is equal to 1
B) is equal to infinite
C) is equal to zero
D) varies between 0 and 1