A decrease in aggregate supply will cause the price level to
a. rise and real GDP to fall
b. rise and real GDP to rise
c. rise and the unemployment rate to fall
d. fall and real GDP to rise
e. fall and the unemployment rate to rise
A
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In the United States, recessions are informally defined as ________ in real GDP
A) two consecutive quarters of positive growth B) two consecutive quarters of negative growth C) three consecutive quarters of negative growth D) three consecutive quarters of positive growth
Suppose an economy has the following characteristics: 100 people in the noninstitutional population; 40 people employed; 50 people not in the labor force. How many people are in the economy's labor force?
A) 40 B) 50 C) 90 D) 100
If the cyclical rate of employment equals ?2 percent and the actual rate of unemployment equals 8 percent, then the natural rate of unemployment must equal:
A. ?6 percent. B. 0 percent. C. 10 percent. D. 2 percent.
If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
A. decreasing cost industry. B. increasing cost industry. C. constant cost industry. D. industry characterized by economies of scale.