When the economy enters a recessionary phase of the business cycle, unemployment tends to
A) be unchanged.
B) increase.
C) decrease.
D) change in the same direction as the rate of inflation.
B
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Refer to Figure 13-11. What is the monopolistic competitor's profit maximizing price?
A) P1 B) P2 C) P3 D) P4
How could the existence of an unemployment insurance system or other transfer programs have reduced the severity of the Great Depression?
What will be an ideal response?
The most important determinant of any multiplier in the Keynesian model is
a. the level of planned investment. b. the level of unemployment. c. the marginal propensity to consume. d. the level of excess demand.
Classical economists believed that the economy automatically moves toward equilibrium at full employment
a. True b. False Indicate whether the statement is true or false