The economy needs some unemployment to operate efficiently, because without it
A) workers will find it difficult to find a job, leading to reduced wages and prices.
B) firms will find it difficult to recruit workers, leading to increased wages and prices.
C) firms will find it difficult to recruit workers, leading to reduced wages and prices.
D) workers will find it difficult to find a job, leading to increased wages and prices.
B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100
Indicate whether the statement is true or false
When comparing the price of a tablet with the price of a laptop, Amanda discovered the tablet was more expensive. This is an example of using money as
A) a store of value. B) a medium of exchange. C) a unit of accounting. D) a standard of deferred payment.
Supply-side theories of the business cycle focus on how improper incentives lead to the unwillingness of producers to supply more goods and services at existing prices.
Answer the following statement true (T) or false (F)