According to classical economists, in recessions, not only does the unemployment rate increase, so does the
A. natural rate of unemployment.
B. level of fiscal stimulus.
C. interest rate.
D. level of potential output.
Answer: A
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Starting from long-run equilibrium, the long-run impact(s) of a sharp drop in oil prices, compared to the original equilibrium, is(are):
A. the same inflation and the same output. B. lower inflation and lower output. C. higher inflation and the same output. D. higher inflation and lower output.
Federal Reserve liabilities are equal to
A) gold certificates + other Fed liabilities. B) bank reserves + other Fed liabilities. C) Federal Reserve notes. D) cash + loans + U.S. Treasury deposits.
The Purchasing Managers' Index is __________ indicator
A) a leading B) a coincident C) a lagging D) an inconsistent
Most Americans believe that families really could get by on the government's definition of minimum needs if they tried hard
Indicate whether the statement is true or false