Cyclical unemployment is:
A. the effect of wages remaining persistently above the market-clearing level.
B. unemployment caused by short-term economic fluctuations reflected in GDP growth.
C. unemployment caused by workers who are changing their location, job, or career.
D. unemployment resulting from a mismatch between the skills workers can offer and the skills demanded.
Answer: B
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Including investment and production in the two-good, two-period model with trade
A) allows the country to equalize absorption and output demand. B) renders terms of trade endogenous. C) allows the country to react to changes in the interest rate. D) allows the government to run budget deficits.
The definition of human capital refers to
a. worker education and workers' equipment. b. worker education and workers' physical capital. c. workers' equipment and workers' physical capital. d. worker education and worker training.
Suppose you go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out of pocket for the year to qualify for insurance benefits. This is an example of:
A. coinsurance. B. a deductible. C. monopsony power. D. a deferred benefit plan.
Monetary policy affects the goods market through its impact on the interest rate and planned investment.
a. true b. false