A recession occurs when ________, when ________, or when both of these occur.
A. potential output grows rapidly; actual output equals potential output
B. potential output grows rapidly; actual output falls below potential output
C. potential output grows slowly; actual output rises above potential output
D. potential output grows slowly; actual output falls below potential output
Answer: D
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Which of the following cause the unemployment rate as measured by the B of LS to understate the true extent of joblessness?
The expansionary monetary and fiscal policies of the 1960s resulted in
A) low inflation rates and low rates of unemployment. B) high inflation rates and high rates of unemployment. C) high inflation rates and low rates of unemployment. D) low inflation rates and high rates of unemployment.
Unemployment insurance is a part of
A. stabilization policy. B. growth policy. C. right to work laws. D. social security.
Which of the following products is most likely to provide positive externalities?
a. a concert ticket b. an ice cream cone c. a college degree d. a toothbrush