If the economy's full-employment output is $12 trillion, actual output is $10 trillion, and the budget deficit is $2 trillion, the deficit in this case is known as a
A. natural employment deficit.
B. cyclical deficit.
C. debt deficit.
D. structural deficit.
Answer: B
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Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's sales dipped. Janae's unemployment would be best classified as
A) natural unemployment. B) cyclical unemployment. C) structural unemployment. D) sales-related unemployment. E) frictional unemployment.
If the goods' money prices do not change, a depreciation of the dollar against the pound
A) makes British sweaters cheaper in terms of American jeans. B) makes British sweaters more expensive in terms of American jeans. C) makes American jeans more expensive in terms of British sweaters. D) doesn't change the relative price of sweaters and jeans. E) makes British jeans more expensive in Britain.
Which of the following is an advantage of using a credit card? a. Credit cards help account holders tap directly into their checking account. b. Credit cards help account holders get a loan from the card issuer
c. Credit cards require a PIN number, and are therefore safe. d. Credit card holders can earn a fixed interest on their accounts. e. Credit cards help eliminate the use of money.
The labor supply curve
a. slopes upward to illustrate that more people will want to work as the real wage increases b. slopes upward to illustrate that changes in the real wage are directly proportional to changes in the nominal wage c. may slope either upward or downward, depending upon the real wage d. slopes downward to illustrate that a decrease in the real wage decreases the number of individuals willing to work e. slopes downward to illustrate that the availability of workers is directly proportional to the real wage