The unemployment rate will increase whenever there is
a. an increase in the number of persons classified as unemployed.
b. an increase in the number of unemployed persons relative to the size of the labor force.
c. an increase in the size of the U.S. population and there is no change in the number of persons classified as employed.
d. a reduction in the size of the labor force while the number of unemployed decreases.
B
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Which of the following treaties/agreements would be associated with creating a free trade area for the European Union?
A) Treaty of Rome B) Single Europe Treaty C) Delors Agreement D) Treaty on European Union E) Schengen Agreement
Figure 9-2
indicates that the output of the economy, y1, is
a.
greater than the economy's long-run capacity.
b.
equal to the economy's long-run capacity.
c.
less than the economy's long-run capacity.
d.
in short-run equilibrium but not long-run equilibrium.
If the government thinks the natural unemployment rate is 5%, when it is really 6%, then the government will
A) overestimate the actual deficit. B) underestimate the actual deficit. C) overestimate the cyclically adjusted deficit. D) underestimate the cyclically adjusted deficit. E) none of the above
BMW recently decided to build a manufacturing plant in Shenyang, China. At this plant, BMW is able to take advantage of paying lower wages to its Chinese workers than it pays its German workers, but it also sacrifices the high levels of technical training possessed by its German workers. In deciding to open the Shenyang plant, BMW
A) faced no trade-offs because employing lower-wage workers increased efficiency. B) eroded some of its competitiveness in the luxury car market because of its decreased cost of production. C) faced a trade-off between higher cost and lower precision. D) adopted a negative technological change because it replaced high-skilled workers with low-skilled workers.