A reduction in unemployment benefits will
A) not change the amount of frictional unemployment because unemployment benefits affects only structural unemployment.
B) increase the amount of frictional unemployment.
C) decrease the amount of frictional unemployment.
D) increase the amount of cyclical unemployment.
E) not change the amount of frictional unemployment because unemployment benefits affects only cyclical unemployment.
C
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Regular and organic vegetables are substitutes. A rise in the price of organic vegetables, other things constant, would tend to
A) reduce the demand for regular vegetables. B) increase the demand for regular vegetables. C) have no effect on the demand for regular vegetables. D) have no effect on the quantity demanded of organic vegetables.
Under current policy, the Fed ties the discount rate to the
a. prime rate. b. AAA corporate bond rate. c. federal funds rate. d. long-term government bond rate.
Compare the 2014 unemployment rates and labor-force participation rates of whites, blacks, adults of prime working age (ages 25-54), and teenagers (ages 16-19)
Keynes argued that when the economy is in a slump, an extra dollar of savings by households will:
A. translate into highly risky investment spending by firms. B. translate into an additional dollar of investment spending by firms. C. not necessarily translate into an additional dollar of investment spending by firms. D. translate into more than an additional dollar of investment spending by firms.