During the recession of 2008-2009, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment would have
A. increased the natural rate of unemployment.
B. had no effect on the natural rate of unemployment.
C. decreased the natural rate of unemployment.
D. either increased or decreased the natural rate of unemployment.
Answer: B
You might also like to view...
If persistent inflation was due to declines in long-run aggregate supply, what pattern would be observed?
A) Only prices of services would increase; prices of goods would remain constant. B) Increases in the price level would occur simultaneously with increases in real GDP. C) Increases in the price level would occur simultaneously with decreases in real GDP. D) Only prices of goods would increase; prices of services would remain constant.
Refer to Figure 12-9. Identify the short-run shut down point for the firm
A) a B) b C) c D) d
A person who would work for 15 more years earning $35,000 per year and discounts the future at an interest rate of 5.5% per year has an annually-compounded discounted expected present value of current and future earnings equal to
A. $351,315. B. $856,225. C. $622,881. D. $201,723.
To achieve allocative efficiency, one must compare the
A) marginal cost of a good to its opportunity cost. B) opportunity cost to the attainable point on the production possibilities frontier. C) marginal benefit of a good to its marginal cost. D) marginal cost to the production efficiency cost. E) point of production efficiency to the point of allocative efficiency.