The unemployment rate generally falls during ________ in the business cycle
A) a peak
B) a recession
C) a trough
D) an expansion
D
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In the final two decades of the twentieth century, per capita income in sub-Saharan Africa
A) remained relatively unchanged. B) increased by approximately 35 percent. C) increased by more than 75 percent. D) decreased by approximately 6 percent.
In discussing the distribution of income among families, the term “lowest fifth” indicates
a. the poorest five percent of families. b. the poorest twenty percent of families. c. the smallest twenty percent of families. d. the percentage of families receiving one-fifth of the income.
Keynesian analysis suggests that a planned budget surplus
a. will affect aggregate demand only if the money supply decreases by the size of the surplus. b. will stimulate both consumption and income. c. will stimulate output and employment. d. is proper during periods of inflation but may increase unemployment if timed improperly.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, the equilibrium price of X will ________ and the equilibrium price of Y will ________.
A. increase; increase B. decrease; increase C. decrease; decrease D. increase; decrease