Author Question: The natural rate hypothesis states that A) it is natural for the unemployment rate to be less ... (Read 145 times)

shenderson6 · **on:** Jun 29, 2018

The natural rate hypothesis states that

A) it is natural for the unemployment rate to be less than the natural unemployment rate.
B) changes in the inflation rate temporarily change the natural unemployment rate.
C) it is natural for the unemployment rate to exceed the inflation rate.
D) only natural economic policies can bring a permanent reduction in the unemployment rate.
E) changes in the inflation rate temporarily change the unemployment rate.

Question 2

Sammy has a drone that he values at 1,500. Frank values the same drone at 1,000. The government offers a subsidy of 800 to the buyers of drones, and Sammy and Frank agree on a price of 1,600. The cooperative surplus for Sammy and Dean will be

A) 200.
B) 300.
C) 600.
D) 800.