The unemployment rate can increase when
A. the proportion of 18-22 year olds that go to college increases.
B. the number of unemployed workers increases.
C. the size of the military increases.
D. the number of job finders increases.
Answer: B
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A friend claims that the United States is a net international debtor. The best way of testing this claim is to see whether
A) U.S. foreign liabilities exceeded U.S. foreign income. B) U.S. receipts from foreign assets exceeded U.S. payments to foreign owners of U.S. assets. C) U.S. official reserve assets were positive or negative. D) the United States ran a balance of payments surplus or deficit last year.
Which of the following is the mandate of the European Central Bank?
A) high economic growth B) price stability C) low unemployment D) a fixed exchange rate
Average cost equals
A. change in total cost/change in quantity. B. total cost/quantity. C. total cost ? total variable cost. D. total cost ? total fixed cost.
If the marginal propensity to consume (MPC) is 0.8, the spending multiplier will be
A) 0.2. B) 1.25. C) 4.0. D) 5.0.