Unemployment is a lagging indicator because:
A. employers wait to see how bad a recession looks before making the difficult decision to lay off workers.
B. employers wait to see how solid a recovery looks before committing to take on new employees.
C. firms may first try to decrease or increase the hours of existing employees before changing levels of employment.
D. All of these are reasons that make unemployment a lagging indicator.
D. All of these are reasons that make unemployment a lagging indicator.
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Choosing from among the following, the worst recession was in
A. 1937-1938. B. 1980. C. 1990-1991. D. 2001.
Refer to Figure 13-4. In the figure above, LRAS1 and SRAS1 denote LRAS and SRAS in year 1, while LRAS2 and SRAS2 denote LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the growth rate in potential GDP in year 2?
A) 8% B) 9.1% C) 10% D) 12%
Contractionary fiscal policy is designed to combat demand-pull inflation and consists of a decrease in government spending and/or an increase in taxes
a. True b. False Indicate whether the statement is true or false
The Coase Theorem works because the negotiation
A. makes neither party better off. B. makes both parties better off. C. makes the party with the property rights better off. D. makes both parties equally better off.