Between 2007 and 2009, the U.S. unemployment rate rose from under 5 percent to over 8 percent. A Keynesian economist would most likely blame this increase in unemployment on:
A. an increase in the bargaining power of labor unions.
B. a decline in the level of aggregate demand.
C. a decline in aggregate supply.
D. an increase in the minimum wage.
Answer: B
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Farming in the New England colonies tended to be
(a) large scale. (b) worked by slaves. (c) small scale and worked by members of the family. (d) exported to England and its trading partners for high profits.
The tools of monetary policy:
A. are limited in number and never change. B. continue to evolve as the economy changes. C. are all equally effective since they all do basically the same thing. D. have been used in the same basic ways for a hundred years.
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, using the profit maximization rule, a monopolist that is able to practice price discrimination will charge
A. Different prices to different customers. B. A price of $500. C. A price of $450. D. A price of $400.
An increase in U.S. imports from Switzerland increases the ________ for U.S. dollars and increases the ________ of Swiss francs.
A. supply; supply B. supply; demand C. demand; supply D. demand; demand