Which of the following is a correct sequence of events during a recession?
A. Unemployment rises, income falls, tax revenue falls, unemployment benefits rise, and the budget deficit rises.
B. Unemployment rises, income falls, tax revenue rises, unemployment benefits fall, and the budget deficit falls.
C. Unemployment rises, income rises, tax revenue rises, unemployment benefits rise, and the budget deficit rises.
D. Unemployment falls, income falls, tax revenue falls, unemployment benefits rise, and the budget deficit rises.
Answer: A
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The data in the above table indicate that when the price level is 120
A) firms have unexpectedly low inventories, so prices will rise. B) inventories are at levels planned by firms. C) firms will plan to increase the level of output. D) firms have unexpectedly high inventories, so prices fall.
Which of the following is true about the LM curve?
a. Along the LM curve, actual expenditure is equal to planned expenditure. b. The LM curve slopes upward and is consistent with a given level of income. c. The LM cuve slopes upward for a given level of the money supply. d. The LM curve is horizontal in the classical model. e. none of the above.
In the above figure, the monopsonist will employ
A) L2 at a wage of W2. B) L2 at a wage of W3. C) L1 at a wage of W1. D) L1 at a wage of W3.
When the value of our goods exports is less than the value of our goods imports,
a. d and e. b. the value of the dollar must fall. c. there will be domestic unemployment. d. there will be an unfavorable balance of trade. e. foreign currency reserves must fall.