If the government increases unemployment benefits, then the equilibrium amount of employment ________ and potential GDP ________
A) increases; increases
B) does not change; does not change
C) increases; decreases
D) decreases; decreases
E) decreases; increases
D
You might also like to view...
If we compare the four sources of spending in the economy we see that
A) household consumption is the smallest. B) government expenditure is the largest. C) business investment is the largest. D) household consumption is the largest.
Which of the following are most likely to be in poverty?
a. Families headed by a male b. White males c. Disabled people d. Married couples e. People with a college degree
Which of the following is NOT a reason why economists are interested in understanding consumer behavior?
A. Economists are often called upon to evaluate public policies that impact the well-being of consumers. B. It is important for businesses to be able to accurately predict consumers' choices. C. Economists want to understand the conditions under which trade will take place. D. Economists want to predict the value of a company's stock.
A nation's infrastructure refers to:
A. public capital goods such as highways and sanitation systems. B. the productivity of its labor force. C. its ability to realize economies of scale. D. its stock of technological knowledge.