Explain two economic costs, and two human costs of unemployment.
What will be an ideal response?
One cost of unemployment is lost output, meaning less production for the economy. A second cost is the loss of income for the individual. Other costs such as increased suicides, increased crime, and increased illness are also consequences of unemployment.
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A rising price level decreases consumption by decreasing the real value of household wealth
Indicate whether the statement is true or false
Which of the following does NOT belong?
A) NAFTA B) Uruguay Round C) World Trade Organization D) non-tariff barriers E) major free trade agreements of the 1990s
Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because
A) the index is not produced in a timely manner. B) the government manipulates the index so it never predicts a recession. C) the index is not designed for forecasting. D) data on the components of the index are revised.
Hyperinflation typically ________
A) describes periods of extreme price increases of over 50% per month or 1,000% per year B) is a result of extreme periods of money growth that tend to come from large fiscal imbalances C) affects both poor and developed economies D) all of the above E) none of the above