The unemployment rate may:
A. understate the effect of a recession on employment because some leave the labor force.
B. overstate the effect of a recession on employment because some leave the labor force.
C. understate the effect of a recession on employment because many enter the labor force.
D. overstate the effect of a recession on employment because many enter the labor force.
Answer: A
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The table above gives the number of people employed and the number of people unemployed in Canada, Japan, and the United States on the average during 1999
In 1999, the unemployment rate in ________ was the highest and the unemployment rate in ________ was the lowest. A) the United States; Japan B) Canada; the United States C) Japan; Canada D) Canada; Japan E) Japan; the United States
Which of the following is NOT a nontransaction deposit?
A) a money market deposit account B) a certificate of deposit C) a savings account D) a NOW account
Johnny has been working in a sandwich shop full-time while he attends college. When he graduates, he quits the sandwich shop and begins to search for full-time employment related to his college degree. Johnny would be considered:
A. structurally unemployed. B. cyclically unemployed. C. classically unemployed. D. frictionally unemployed.
Explain why the Fisher equation is not highly accurate at high rates of inflation. Use an example.
What will be an ideal response?