What are the three types of unemployment and how do they change over the business cycle?
What will be an ideal response?
The three types of unemployment are frictional, structural, and cyclical. Of these three types, the first two—frictional and structural unemployment—have no strong relationship to the business cycle. The third type, cyclical unemployment, however is the result of the business cycle. When the economy is in a recession and people lose their jobs as a result of the recession, the unemployed workers are cyclically unemployed. Conversely, when the economy is in an expansion, cyclical unemployment decreases. Hence, cyclical unemployment increases during a recession and decreases during an expansion.
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A decrease in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Which of the following most accurately describes an impact of the Navigation Acts?
a. Wages of Southern plantation owners increased. b. Wages of New England sailors increased. c. Wages of wheat farmers in the Middle Colonies increased.
These are the cost and revenue curves associated with a firm.
If the firm in the given graph were to maximize profits, it would:
A. earn zero economic profits. B. cause deadweight loss. C. produce Q1 and charge P3. D. All of these statements are true.
Refer to the graph shown, which shows an oligopolist facing a kinked demand curve. The firm will not increase price when marginal costs fluctuate between which two points?
A. a and b B. b and c C. c and d D. a and d