If the economy enters a recession
A) frictional unemployment increases.
B) structural unemployment decreases.
C) cyclical unemployment increases.
D) the number of workers on layoff decreases.
C
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Allowing bank branching across state lines gives banks greater ability to coordinate bank operations. This makes it easier for them to receive the benefits of
A) the dual banking system. B) economies of scale. C) disintermediation. D) interest-rate irregularities.
Which of the following is often referred to as the basic postulate of economics?
What will be an ideal response?
Of the following, the most often used measure of changing living standards is
A) the growth rate of nominal GDP. B) the growth rate of real GDP. C) the growth rate of nominal GDP per capita. D) the growth rate of real GDP per capita. E) unemployment per capita.
What two solutions did Keynes suggest as appropriate government policies in order to close a recessionary gap? Does the assumption of stuck prices hold true when the economy moves close to its potential output? Explain.
What will be an ideal response?