A recession is best defined as a period during which:
a. the percentage of the population employed increases.
b. employment, output, and income decrease
c. the average price level in an economy decreases.
d. the usage of labor and capital resources increases.
e. budget deficit and trade deficit decrease.
b
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Which of the following statements is true?
A) Eliminating its tariffs and quotas unilaterally would not benefit the United States because this would remove the leverage it would have to persuade other countries to eliminate their trade restrictions. B) Economic efficiency would be increased if the United States eliminated all of its trade restrictions, but only if all other countries eliminated their trade restrictions too. C) The U. S. economy would gain from the elimination of its tariffs but not from the elimination of its quotas. D) The U.S. economy would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas.
If the MPC is 0.5, then a $10 million increase in disposable income will increase consumption by
A) $15 million B) $5 million. C) $50 million. D) $2 million.
According to some economists and policy makers, the solution to Spain’s high youth unemployment is to
a. reduce government-mandated wages, which would allow it to reduce government spending. b. increase government-mandated wages, which would allow it to reduce government spending. c. increase government-mandated wages, which would allow it to increase government spending. d. reduce government-mandated wages, which would allow it to increase government spending.
On the graph that depicts the theory of liquidity preference,
a. the demand-for-money curve is vertical. b. the supply-of-money curve is vertical. c. the interest rate is measured along the horizontal axis. d. the price level is measured along the vertical axis.