A decrease in aggregate demand and the subsequent cutbacks in production lead to:
A. frictional unemployment.
B. cyclical unemployment.
C. cost-push unemployment.
D. structural unemployment.
Answer: B
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When the parties to a deal have access to different information:
A. markets may fail to exist in such cases. B. parties will voluntarily share information truthfully in order to achieve efficiency. C. markets will be efficient. D. parties will blindly trust one another.
Which of the following is not a Central Bank:
(a) The European Central Bank. (b) Bank of England. (c) Bank of America. (d) Federal Reserve.
Other things the same, an increase in the price level induces less spending on a. investment and net exports
b. investment, but not net exports. c. net exports, but not investment. d. neither net exports nor investment.
If the United States decides to allocate more resources to capital goods and less to consumer goods, the United States will obtain a greater degree of:
A) economic growth. B) full employment. C) price stability. D) technical efficiency.