A major employer in a small town announces upcoming major layoffs of employees. What should we expect to happen to the consumption functions of the affected employees?
A. The consumption functions will shift upward.
B. Most employees will move upward along their consumption functions
C. The consumption functions will shift downward
D. Most employees will move downward along their consumption functions
Answer: C
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What are automatic stabilizers? How do they help stabilize real GDP?
What will be an ideal response?
The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle
A) expansion. B) peak. C) trend. D) recession. E) trough.
Which of the following groups tends to have the highest unemployment rate in the United States?
a. African American teenagers b. Workers, age 25 or older, who are college graduates c. White women d. Workers, 25 years of age or older, who are high school dropouts e. White teenagers
If the short-run price elasticity of demand for hospital care is .27, then the long-run price elasticity is expected to be:
A. greater than .27. B. perfectly inelastic. C. less than .27. D. equal to .27.