Cyclical unemployment is caused by:
a. shifts in the job skills required in the economy.
b. seasonal layoffs.
c. declines in real GDP.
d. cyclical changes in the job skills among workers.
c
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Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a corporation. What is one advantage to Jeremy of setting up his business as a corporation?
A) By setting up the business as a corporation, Jeremy would have both ownership and control over the business. B) By setting up the business as a corporation, Jeremy would not face double taxation. C) By setting up the business as a corporation, Jeremy would have the ability to share risk with shareholders. D) All of the above would be advantages of setting up his business as a corporation.
The argument that strategic planning is not likely to be practical due to insufficient information means that
A) because of trade secrets, the government does not know true cost relationships in any given industry. B) if the government had all the relevant information in a given industry then it could decide whether a subsidy would enhance the public's welfare. C) even if the government had all the relevant information in a given industry, it still could not decide whether a subsidy would enhance the public's welfare. D) due to recent cuts in the Department of the Census' sampling budgets, industry surveys are no longer reliable, so that there is no way to determine if a subsidy is in the public's interest. E) the government would need to employ its intelligence agencies in order to gain a complete understanding of the market.
An example of non discretionary policy making is
A) a rule under which the Fed targets the inflation rate. B) expansionary fiscal policy. C) changes in the interest rate initiated by the Fed. D) a Congressional tax-rate cut aimed at boosting real GDP.
Which of the following, other things the same, would make the price level increase and real GDP decrease?
a. long-run aggregate supply shifts left. b. long-run aggregate supply shifts right. c. aggregate demand shifts right d. aggregate demand shifts left.