In the short-run macro model, cyclical unemployment
a. will be eliminated once the equilibrium output level is reached
b. is caused by an economic expansion
c. occurs when the economy is overheated
d. is caused by too much spending
e. results from insufficient spending
E
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Sarah consumes only strawberries and cream, and she is spending all of her income. Her marginal utility of her last dish of strawberries is 200 and her marginal utility of her last pint of cream is 200
The price of strawberries is $1.00 per dish and the price of cream is $2.00 per pint. To maximize her utility, Sarah should A) buy more strawberries and less cream. B) buy more cream and less strawberries. C) not change her purchases of strawberries and cream. D) definitely buy no cream at her consumer equilibrium.
The change in the level of planned spending that results from a change in the price level is indicated by the movement of the economy along a given
a. aggregate expenditure curve. b. aggregate demand curve. c. aggregate supply curve. d. both aggregate expenditure curve and aggregate demand curve.
An elastic demand is one in which the elasticity is greater than:
a. two. b. four. c. one. d. three.