What is cyclical unemployment?
What will be an ideal response?
Cyclical unemployment is the unemployment that accompanies fluctuations in real GDP.
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Economists generally agree that in the long run changes in aggregate demand affect
A) aggregate output but not the price level. B) the price level but not aggregate output. C) both the price level and aggregate output. D) neither the price level nor aggregate output.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
An advantage of proprietorships is
A) the ease with which they can be formed and dissolved. B) their ability to raise large amounts of equity capital. C) the fact that their profits are not taxed. D) the breadth of management expertise that comes from having a board of directors.
The budget line
A. has a positive slope. B. is a vertical line. C. shows the combination of goods that can be purchased at fixed prices and with a given income. D. shifts to the left as income increases.