The presence of discouraged workers:
A. increases the size of the labor force but does not affect the unemployment rate.
B. reduces the size of the labor force but does not affect the unemployment rate.
C. may cause the official unemployment rate to understate the true amount of unemployment.
D. may cause the official unemployment rate to overstate the true amount of unemployment.
C. may cause the official unemployment rate to understate the true amount of unemployment.
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Inflation results
(a) when the price of one good or service increases. (b) when too much money is chasing too few goods. (c) when prices, on average, decrease across the economy. (d) when banks decrease lending.
The discount rate's main significance is that: a. changes in the rate are commonly viewed as a signal of the Fed's intentions with respect to monetary policy. b. changes in the rate are a sign that monetary policy has swung strongly in a new direction
c. it can be done quietly, without a lot of political debate or a public announcement. d. a small change in the rate can make a huge change in the number of dollars that are in excess reserves in banks all over the country.
Government intervention always results in the optimal mix of output.
Indicate whether the statement is true or false.
Give some explanations for the decline in union membership in the United States.
What will be an ideal response?