If an economy is operating at short-run equilibrium below the level of real GDP, the self-correction model result is that:
a. unemployment increases
b. unemployment falls.
c. cyclical unemployment increases.
d. frictional and structural unemployment increase.
b
You might also like to view...
The CPI in year one equaled 1.45. The CPI in year two equaled 1.51. The rate of inflation between years one and two was ________ percent.
A. 6.0 B. 4.0 C. 4.1 D. 4.5
A person who is in the 15 percent marginal tax bracket and has a total taxable income of $100,000 will owe $15,000 in taxes
a. True b. False Indicate whether the statement is true or false
One way to predict the future profitability of a company is through:
A. technical analysis. B. fundamental analysis. C. using current prices. D. All of these are ways to predict a company's worth.
The structural deficit can be defined as
a. the deficit that is structurally obstructing economic recovery to reach level of high employment. b. a hypothetical construct that estimates the deficit, given current tax rates and expenditure policies, if the economy were operating at some fixed high-employment level. c. the deficit necessary to restructure the economy and reach a desired high-employment level. d. the deficit that would prevail if fiscal policy were structured differently in order to reach a desired high-employment level.