How will the crisis affect the natural rate of unemployment?
What will be an ideal response?
There is an increasing worry that the increase in the actual unemployment rate may eventually translate into an increase in the natural unemployment rate. Workers who have been unemployed for a long time may lose their skills, or their morale, and become unemployable, leading to a higher natural rate.
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Which of the following conditions, if present, is sufficient to make a game cooperative?
A) Individual payoffs are greater if all players choose the same strategy. B) Players can communicate with each other. C) Players can negotiate binding contracts committing them to particular strategies. D) Players must agree unanimously on any set of strategies. E) The payoff that is highest for all individuals together is also highest for each individual player.
A slump in one industry could increase the relative attractiveness of another industry:
A. increasing the quantity of labor supplied in the latter. B. decreasing the quantity of labor supplied in the latter. C. increasing the quantity of labor demanded in the latter. D. decreasing the quantity of labor demanded in the latter.
"Crowding in" refers to federal government deficits:
a. used for public infrastructure that will offset any decline in business investment. b. which reduce private business and consumption spending. c. which reduce future rates of economic growth. d. all of these.
When a country continually adds more capital to its existing stock productivity will:
A. increase at a decreasing rate. B. increase at an increasing rate. C. decrease at a decreasing rate. D. decrease at an increasing rate.