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1. Define the following terms. a) Natural rate of unemployment - b) Frictional unemployment - c) Unit of account - d) Open-market operations (OMO) -

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1. Define the following terms. a) Natural rate of unemployment - b) Frictional unemployment - c) Unit of account - d) Open-market operations (OMO) - e) Classical dichotomy - f) Velocity of money - g) Recession - h) Depression - i) Marginal propensity to consume - j) Crowding-out effect - [ 2 * 10 = 20 points ]

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