Unemployment is a lagging indicator because:
A. employers wait to see how bad a recession looks before making the difficult decision to lay off workers.
B. firms may first try to decrease or increase the hours of existing employees before changing levels of employment.
C. employers wait to see how solid a recovery looks before committing to take on new employees.
D. All of these are reasons that make unemployment a lagging indicator.
Answer: D
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The following government policies will help achieve faster economic growth EXCEPT
A) establishing and protecting property rights. B) improving the quality of education. C) discouraging saving and encouraging spending. D) encouraging research and development. E) increasing saving.
Increases in inventories are subtracted from GDP because they reflect output that is produced but not sold
a. True b. False
A benefit of a monopoly is
a. efficient production. b. decreasing long-run marginal costs. c. profit that can be invested in research and development. d. All of the above are correct.
If income decreases and prices are unchanged, the consumer's budget constraint
a. remains the same. b. shifts outward. c. shifts inward. d. rotates outward along the horizontal axis.