The type of unemployment that arises from a decrease in real GDP is called
A) frictional unemployment.
B) structural unemployment.
C) downturn unemployment.
D) non-expansion unemployment.
E) cyclical unemployment.
E
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
A market in which a firm emerges as a monopoly due to large economies of scale is referred to as:
A) a natural monopoly. B) a regulated monopoly. C) a legal monopoly. D) an exclusive monopoly.
Answer the following statements true (T) or false (F)
1. Government intervention in the U.S. economy includes legislation such as antitrust laws, labor laws, and safety regulations. 2. Full employment is considered to have been achieved only when everybody in the economy has a job. 3. An economic growth rate of 3 percent would be considered unhealthy for the U.S. economy. 4. A stable unemployment rate requires that the U.S. economy grow each year in order to absorb new workers who enter the labor force.
The economizing problem is essentially one of deciding how to make the best use of:
A. Limited resources to satisfy limited economic wants B. Unlimited resources to satisfy unlimited economic wants C. Unlimited resources to satisfy limited economic wants D. Limited resources to satisfy unlimited economic wants