"Full employment" is said to exist when the actual unemployment rate is zero
Indicate whether the statement is true or false
False
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A restaurant charges its customers 12% of the total food price as tax. This is an example of a ________ tax
A) payroll B) wealth C) property D) sales
If the government increases expenditure by $40 billion and increases tax revenue by $40 billion, what is the impact on aggregate demand? Explain your answer
What will be an ideal response?
The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect
A) that jobs are less difficult to find. B) it is more likely that an incumbent president will be re-elected. C) that investors will be more optimistic about the economy. D) that stock prices are more likely to fall.
According to classical economists, the increase in the unemployment rate in recessions occurs because
A) aggregate demand is insufficient. B) the time needed to find a job rises in recessions. C) labor unions prevent firms from cutting wages. D) firms will replace workers by machines.