Economists who focus on the need for fiscal austerity tend to focus on
A. the short run.
B. the long run.
C. both the short run and the long run.
D. neither the short run or the long run.
Answer: B
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In an economy of 100 people in the labor force, if 10 people are unemployed for 4 weeks during the year, and 30 people are unemployed for 8 weeks during the year, and the rest are employed continuously throughout the year, then the average duration of unemployment in this economy is:
A. 7 weeks. B. 5 weeks. C. 8 weeks. D. 6 weeks.
The net result of deflation is to:
A. increase consumption and decrease investment, increasing aggregate demand overall. B. decrease consumption and increase investment, decreasing aggregate demand overall. C. decrease consumption and investment, decreasing aggregate demand. D. increase consumption and investment, increasing aggregate demand.
Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. If the firm's cost of capital is $18 per unit, then its cost of labor is ________ per unit.
A. $1.80 B. $9 C. $36 D. $900
Suppose an individual can earn 3 percent interest on an annual term deposit. His opportunity cost of holding $100,000 in cash instead of investing in the term deposit will be: a. $3,300
b. $330. c. $1,000. d. $6,000. e. $3,000.