The Bureau of Labor Statistics counts discouraged workers as
a. employed. Including them as employed makes the unemployment rate lower than otherwise.
b. unemployed. Including them as unemployed makes the unemployment rate higher than otherwise.
c. out of the labor force. If they were counted as unemployed the unemployment rate would be higher.
d. None of the above is correct.
c
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Refer to the table. The level of productivity in the economy is:
Answer the question on the basis of the following information about the relationship between input quantities and real domestic output in a hypothetical economy:
A. 2.
B. .5.
C. 4.
D. 200.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
"An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by
A) Alfred Marshall. B) Karl Marx. C) John Maynard Keynes. D) Adam Smith.
In the Keynesian consumption function, if current income is equal to zero, consumption spending is equal to ________
A) the marginal propensity to consume B) the average propensity to save C) autonomous consumption D) exogenous consumption