The presence of discouraged workers
A. may cause the official unemployment rate to understate the true amount of unemployment.
B. reduces the size of the labor force but does not affect the unemployment rate.
C. may cause the official unemployment rate to overstate the true amount of unemployment.
D. increases the size of the labor force but does not affect the unemployment rate.
Answer: A
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When a lender refuses to make a loan, although borrowers are willing to pay the stated interest rate or even a higher rate, the bank is said to engage in
A) coercive bargaining. B) strategic holding out. C) credit rationing. D) collusive behavior.
Which of the following occurred during the 20th century?
(a) The total U.S. population increased. (b) The percentage of foreign-born residents decreased, on average. (c) The median age fell. (d) All of the above occurred during the 20th century.
Which of these is a supply-side approach to increase growth?
a. Spending on the construction and repair of state highways b. Providing tax benefits to start-up companies c. Investing in the production of arms and ammunitions d. Replacing old aircrafts with new fighter planes e. Increasing transfer payments to retirees
Equilibrium in the Keynesian model is
a. quite stable, unless the government does something to throw it off balance. b. stable as long as planned injections are equal to planned leakages. c. not affected much by taxes or government spending. d. not a significant concept in Keynesian analysis.