Which of the following explains why frictional unemployment exists in an economy?
A) It arises because job search is completely a supply side phenomenon in the labor market, and firms make no attempts to advertise for the vacancies they have.
B) It arises because most of the workers shirk at work.
C) It arises because it takes time for an unemployed worker to find a firm with a well-matched job vacancy.
D) It arises because unemployment benefits encourage workers not to look for jobs.
C
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If an import quota is imposed on imports of shrimp into the United States, U.S. consumers ________ and the U.S. economy will ________
A) gain; lose B) gain; be unaffected C) gain; gain D) lose; lose E) lose; gain
Economist Alban William Phillips believed that: a. the Fed should follow a policy rule because it does not know the lag structure. b. the Fed should follow a policy rule to avoid monetary surprises
c. there is an inverse relationship between inflation and unemployment. d. private sector spending is inherently unstable. e. government spending is inherently unstable.
Revenue and spending programs in the federal budget that automatically adjust with the ups and downs of the economy are known as _____
Fill in the blank(s) with the appropriate word(s).
Economic growth would be illustrated by
A) a rightward shift of aggregate demand. B) a leftward shift of aggregate demand. C) a rightward shift of aggregate supply. D) a leftward shift of aggregate supply.