The demand for automobiles rises when the economy experiences an expansion. If an automobile manufacturer hires additional workers during an expansion, this would be best described as an example of a reduction in
A. frictional unemployment.
B. natural unemployment.
C. structural unemployment.
D. cyclical unemployment.
Answer: D
You might also like to view...
Refer to Scenario 5.8. The value to Icarus Airlines of complete information is
A) $40 million. B) $90 million. C) $115 million. D) $120 million. E) $125 million.
Answer the following statements true (T) or false (F)
1. The GDP counts durable goods only during their year of production. 2. In national income accounting, machine depreciation is treated as a cost of production, but damage to a region’s air quality is not. 3. The GDP is reported on a monthly basis by the Department of Commerce. 4. An increase in the price level adds to the value of the nominal GDP but not to the real GDP. 5. An increase in business inventories would be included in the investment component of GDP. 6. GDP overstates national income because it does not make any adjustment for national debt. 7. Most national wealth in the United States is held in the private sector.
The protectionist view
a. argues that nations should protect their borders from transboundary pollution b. believes that trade can create unfair competition or lose jobs to other nations c. supports environmental policy only if it protects domestic jobs d. ignores environmental issues, focusing only on the effects of trade on competition and employment
According to the Keynesian view, if an economy was operating at long-run equilibrium, an increase in government expenditures (holding taxes constant) would
a. be inflationary. b. lead to a recession. c. lower the real rate of interest. d. reduce the size of the national debt.