When a recession ends
A) the household sector decreases spending substantially.
B) firms increase the amount of borrowing.
C) interest rates decrease.
D) households decrease spending on durable goods.
B
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During the Great Depression, the unemployment rate rose to a maximum of about
A) 10 percent. B) 25 percent. C) 50 percent. D) 13 percent. E) 67 percent.
A vertical demand curve is
A) completely inelastic. B) infinitely elastic. C) highly (but not infinitely) elastic. D) highly (but not completely) inelastic.
When the government's spending is less than tax revenue, it implies that:
a. the government budget is balanced. b. the government is running a deficit. c. there is a budget surplus. d. there is a higher chance of default by the government. e. the government needs to borrow from the central bank.
The increase in unemployment associated with a recession is called:
a. frictional unemployment. b. discouraged unemployment. c. cyclical unemployment. d. structural unemployment.