Tom loses his job and immediately begins looking for another. Other things the same, the unemployment rate
What will be an ideal response?
increases, and the labor-force participation rate is unaffected
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Of the following countries, which is the best example of a command economy?
A) the United States B) Cuba C) Japan D) Brazil
The price elasticity of demand for meat in general is inelastic while the price elasticity of demand for turkey or chicken is more elastic. Why?
A) Turkey and chicken are not red meat. Because they are not the same as other meats, they should have different elasticities. B) Turkey and chicken have many substitutes, such as fish or beef, while meat in general has fewer substitutes. C) Turkey and chicken are inferior goods. D) Turkey and chicken are normal goods.
Shifting resources from other goods to security goods may not increase a nation's national security if
a. the law of increasing opportunity cost is not applicable b. the economy is already at full employment c. the economy is not at full employment d. national security is already at its maximum e. other nations react to the shift by increasing their own spending on national security
Monetarists and Keynesians
A. agree on the impact of fiscal policy on the economy. B. agree on the usefulness of discretionary policy. C. disagree on how the Fed changes money supply. D. disagree on the speed at which wages change.