According to classical economists, unemployment rises in recessions due to an increase in ________ unemployment, not ________ unemployment.
A. frictional and structural; cyclical
B. structural; frictional and cyclical
C. cyclical; frictional and structural
D. frictional and cyclical; structural
Answer: A
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Refer to Figure 19-5. Suppose the Chinese government decides to abandon pegging the yuan to the dollar at a rate which undervalues the yuan
Using the figure above, the equilibrium exchange rate would be ________ and Chinese exports to the United States would ________ in price. A) $0.11/yuan; increase B) $0.11/yuan; decrease C) $0.14/yuan; increase D) $0.13/yuan; increase E) $0.13/yuan; decrease
What type of variables have their movements explained by theory?
A) endogenous B) exogenous C) autonomous D) Both B and C
Explain why economists care about unemployment
What will be an ideal response?
Which of the following facts is not a basis for prospect theory in behavioral economics?
A. People evaluate gains and losses in relation to the status quo, not in absolute terms B. People feel losses much more intensely than they feel gains C. People experience diminishing marginal disutility for losses D. People do not experience diminishing marginal utility for gains