Which of the following explains why employment only rises at a slow pace at the end of a recession?
A) Firms are hesitant to rehire laid off workers as they continue to operate below capacity.
B) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
C) Discouraged workers return to the labor force, and this makes the unemployment rate fall.
D) Discouraged workers leave the labor force, and this makes the unemployment rate rise.
Answer: A
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In the United States, who determines the combination of bond and money creation that finances the federal budget deficit?
A) the federal government itself B) the Federal Reserve C) the private banking system D) private bond- and money-holders
In the above figure, what is the wage rate for the perfectly competitive market?
A) W1 B) W2 C) W3 D) W4
A gaming strategy in which one player states that he/she would break the agreement for eternity if his/her co-player breaks the agreement once is called:
a. a grim trigger. b. a credible threat. c. a chain-store paradox. d. a dominance pull.
The four phases of the business cycle are, in order: peak, downturn, trough, upturn.
Answer the following statement true (T) or false (F)