If the duration of unemployment in a country increases from 16 weeks to 18 weeks, then
A. the size of the labor force will increase.
B. the unemployment rate will decrease.
C. the size of the labor force will decrease.
D. the unemployment rate will increase.
Answer: D
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When the Fed sells government securities, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
Changes in the money market have an impact upon the bond market
Indicate whether the statement is true or false
Transfers of assets, such as stock sales are:
A. included in GDP because they increase domestic wealth. B. included in GDP because they raise domestic production. C. not included in GDP because they do not increase domestic wealth. D. not included in GDP because they do not increase domestic production.
If the price is reduced from $100 to $80 in Figure 20.1, ceteris paribus,
A. Total revenue will decrease. B. Total revenue will increase. C. Quantity demanded will decrease. D. Demand will increase.