Unemployment caused by a contraction in the economy is called:
a. frictional unemployment.
b. cyclical unemployment
c. structural unemployment.
d. seasonal unemployment.
b
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Everything else equal, a decrease in the demand for dollars in exchange for the pesos:
A) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
In economics, the true cost of making a choice is the value of what must be given up.
Answer the following statement true (T) or false (F)
Which of the following is an example of active fiscal policy?
A. Income tax revenues rise in an inflationary period. B. Income tax revenues fall in a recession. C. Congress passes a major tax increase in an inflationary period. D. Unemployment benefits increase in a recession.
The government has bailed out homeowners who are in danger of foreclosure. Furthermore, future homeowners may deduce that the government will again bail them out in the case of future economic turmoil. The government inadvertently has created what is known as:
A. moral hazard. B. herding. C. deleveraging. D. the law of diminishing control.