Which of the following occurs during a recession?
a. Output rises, employment rises and unemployment falls.
b. Output falls, employment falls and unemployment rises.
c. Output rises, employment falls and unemployment falls.
d. Output rises, employment rises and unemployment rises.
e. Output rises, employment rises and tax revenues fall.
B
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Assuming all else equal, if the labor demand curve shifts to the left and the labor supply curve remains unchanged, ________
A) equilibrium wage falls B) consumption falls C) unemployment rises D) equilibrium wage rises
If a competitive firm has to pay a lump sum tax, it will produce less
Indicate whether the statement is true or false
Macroeconomics is the study of
a. how wages are determined in a specific labor market b. how to use the fewest natural resources to produce public goods c. what is happening in the economy as a whole d. how consumers and producers interact in individual markets e. the price and the quantity exchanged in a market
When the economy operates well below its productive capacity, an increase in any spending— whether it's government's or the private sector's—tends to be reflected primarily in a(n)
a. lower level of employment b. increase in price c. lower level of output d. higher level of output and employment e. increase in business inventories