Unemployment and recessions are sometimes necessary to curb high inflation
Indicate whether the statement is true or false
TRUE
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If a wealthy woman marries her butler, quits paying him and does not hire a new butler, then
A) GDP definitely decreases. B) GDP definitely does not change. C) GDP definitely increases. D) GDP either does not change or increases. E) There is not enough information given to reach a conclusion.
Which of the following is true of an externality?
a. An externality enhances the efficiency of the market system. b. An externality is not an economic problem because it is external to the market. c. An externality is a cost borne by the people who are directly or indirectly involved in the production of a good or service. d. An externality accrues to someone who had nothing to do with the production or consumption of a good or service. e. An externality refers to some unexpected change in the equilibrium price or quantity of a product.
Assume that the U.S. population is 300 million. If 70 million individuals are legally classified as unable to work (or are less than 16 years of age), 80 million are classified as unwilling to work, and 14 million are unemployed, what is the unemployment rate?
a. 10.3 percent b. 6.4 percent c. 4.7 percent d. 9.3 percent e. 6.7 percent