If the U.S. economy had grown faster than it actually did from 2009 to 2010, the unemployment rate would have been higher
a. True
b. False
Indicate whether the statement is true or false
False
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When interest rates fall, the IS schedule will experience
A) rightward movement along the curve. B) leftward movement along the curve. C) a shift to the left. D) a shift to the right.
Your friend notices that U.S. auto production and U.S. population growth have moved together over several decades. He reasons that one way to slow population growth is for the government to order the auto makers to cut back on production. You gently point out to him that he
a. is correct only when the economy is in a recession b. has mistakenly inferred causation from observed correlation c. has ignored secondary effects d. has committed the fallacy of composition e. is correct only when the United States enjoys economic growth
A decrease in aggregate supply can result in:
a. unemployment. b. demand-pull inflation. c. prosperity. d. cost-push inflation. e. a recession.
Inventory levels unexpectedly fall and as a result firms increase the quantity of goods and services they produce. Which of the following is consistent with these two occurrences?
A) TP is greater than TE. B) TP is less than TE. C) TE is equal to TP minus the rise in inventories above the optimum inventory level. D) TP is equal to TE. E) b and c