In the short-run macro model, which of the following is the cause of cyclical unemployment?
a. It takes time for people to move to new jobs.
b. Insufficient aggregate spending.
c. It takes time for firms to find new employees.
d. It takes time for people to retrain.
e. Fewer people want to work than before.
B
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A tax is progressive if the ratio of taxes to income rises as income rises.
Answer the following statement true (T) or false (F)
An increase in human capital will tend to cause which of the following?
A) increase labor productivity B) increase the standard of living C) increase economic growth D) all of the above
The accountant for Muzhi's Sushi claims that Muzhi has accomplished "economic efficiency." This means that Muzhi's Sushi
A) produces a given output using the least inputs. B) produces a given output at the lowest cost. C) has an economic profit greater than a normal profit. D) has a normal profit greater than an economic profit.
Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level? If the government does nothing, what ensures that the economy still eventually gets back to the natural rate of output?