Cyclical unemployment
A. occurs even when an economy is producing at a point on its production possibilities frontier.
B. occurs only during a recession.
C. tend to occur when an economy experiences inflation.
D. is a part of an economy's natural rate of unemployment.
Ans: B. occurs only during a recession.
You might also like to view...
In most derivations of the aggregate expenditures model, investment is assumed to be independent of real GDP. What would be the effect on the aggregate expenditures (AE) function if investment spending were positively related to income?
a. The intercept of the AE function would rise. b. The slope of the AE function would become flatter. c. Both the slope and the intercept of the AE function would increase. d. The slope of the AE function would become steeper. e. The intercept of the AE function would increase, and its slope would become flatter.
You are the manager of a monopoly that faces a demand curve described by P = 230 ? 20Q. Your costs are C = 5 + 30Q. The profit-maximizing output for your firm is:
A. 5. B. 7. C. 6. D. 4.
If yesterday the dollar traded for 100 Japanese yen and today 101 yen to the dollar, we would say
A. that the dollar rose in value (appreciated) relative to the yen. B. that the yen fell in value (depreciated) relative to the dollar. C. both of the choices are correct. D. neither of the choices is correct.
Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. The profit- maximizing output for this firm will be:
A. 100.
B. 160.
C. 180.
D. 210.