Author Question: When macroeconomics refers to full employment, what do they mean? a. Full employment occurs when ... (Read 105 times)

jeatrice · **on:** Jun 30, 2018

When macroeconomics refers to full employment, what do they mean?
a. Full employment occurs when the unemployment rate equals zero.
b. Full employment occurs when there is only frictional unemployment, and all other types of unemployment have been eliminated.
c. Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated.
d. Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated.

Question 2

The marginal propensity to save is:
a. the change in saving induced by a change in consumption.
b. (change in S) / (change in Y).
c. 1 MPC / MPC.
d. (change in Y bY) / (change in Y).
e. 1 MPC.