The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of
A. cyclical unemployment.
B. natural unemployment.
C. frictional unemployment.
D. structural unemployment.
Answer: A
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The aggregate demand curve shows the relationship between short-run equilibrium output and the:
A. inflation rate. B. unemployment rate. C. real interest rate. D. nominal interest rate.
The slope of a straight line increases as the numbers on the x-axis become larger
Indicate whether the statement is true or false
The amount by which equilibrium real GDP exceeds full-employment GDP is known as
a. stagflation. b. employment. c. a recessionary gap. d. an inflationary gap.
Which of the following is the best description of the effect of firms’ perceptions of the future on planned investment?
a. It is chaotic and hard to analyze. b. It has an inverse relationship. c. It has no relationship. d. It compounds over time.