Describe the three types of unemployment
What will be an ideal response?
Frictional unemployment is short-term unemployment that arises from the process of matching workers with jobs. Structural unemployment arises from a persistent mismatch between the skills and attributes of workers and the requirements of jobs. Cyclical unemployment is caused by a business cycle recession.
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In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Decrease government spending. b. Lower the discount rate for banks. c. Raise tax rates. d. Increase reserve requirements. e. All of the above
An individual deciding how to allocate her limited time is dealing with both scarcity and trade-offs
a. True b. False Indicate whether the statement is true or false
Refer to Figure 5.7. Which diagram best represents an income-consumption curve where soup is a normal good?
A. A
B. B
C. C
D. D
Real GDP per person in the Canada was $7,377 in 1950. Over the next 48 years it grew at a compound annual rate of 2.0%. If instead real GDP per person had grown at an average compound annual rate 2.5%, then real GDP per capita in the Canada in 1998 would have been approximately ________ larger.
A. $24,130 B. $1,770 C. $9,370 D. $5,049