In the United States, presidential elections occur every four years. If a political business cycle exists in the United States, in which year of a presidential term, all else fixed, would we expect output growth to be lowest?
A) the first or second year
B) the second or third year
C) the third or fourth year
D) the fourth year
A
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Comment on the following statement: "A firm's demand for labor can be affected by the availability of other inputs."
What will be an ideal response?
The concept of inequality
A. has no economic meaning. B. applies to low income countries only. C. is an extension of relative poverty. D. is only a theoretical concept.
The natural rate of unemployment includes
A. Frictional and structural unemployment only. B. Structural and seasonal unemployment only. C. Cyclical and frictional unemployment only. D. Seasonal and cyclical unemployment only.
GDP tends to overstate economic well-being because it takes into account:
A. Improvements in product quality over time B. Expenditures undertaken to correct pollution C. Illegal activities of individuals and businesses D. Nonmarket activities, such as the productive work of homemakers