In the short-run macro model, what type of unemployment is caused by insufficient spending?
a. Cyclical
b. Structural
c. Frictional
d. Seasonal
e. All types of unemployment are caused by insufficient spending
A
You might also like to view...
When constructing an economic model, economists
a. rely mostly on their own value judgments and ignore the far more complex world of facts b. always try to duplicate reality by including all available information c. use assumptions that are true for the individual but never true for the whole economy d. must rely on simplifying assumptions that abstract from the complexity of the real world e. are primarily concerned with making realistic assumptions
As the price of a good declines, a utility-maximizing consumer will respond by purchasing more of that good
a. True b. False Indicate whether the statement is true or false
If the price of a good is zero, a rational consumer will
A. stop consuming the good when marginal utility is zero. B. buy all of the units available. C. not consume the good at all since it must not be valuable if it has a zero price. D. consume the good up to the point where total utility is just below zero.
Refer to the diagram below. If box E represents government, box C businesses, and box A households, then flows (11) and (12) would represent:
A. Goods and services
B. Government expenditures
C. Resources
D. Net taxes