In the prosperity phase of the business cycle, aggregate demand increased raising the price level and employment. But later, in the aftermath of the prosperity phase, aggregate demand slackened so that the price level and employment fell. People who lost their jobs during this phase are considered to be part of the economy's
a. cyclical unemployment
b. structural unemployment
c. permanent unemployment
d. frictional unemployment
e. underemployment
A
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Inflation adjusted hourly wages for the average hourly worker is _______ today than it was in 1973.
A. higher B. lower C. about the same
What is the relationship between the real interest rate, the supply of loanable funds and the demand for loanable funds?
What will be an ideal response?
Read the following two sentences: A: Ten seconds after Nella waved her hand, her friend responded by saying hello. B: As Nella waved her hand, a gust of wind blew. Which of the following is the correct comparison of A and B?
a. A shows correlation; B shows causation. b. A and B both show correlation c. A shows causation; B shows correlation. d. A and B both show causation.
In reaction to the terrorist attacks of September 11, 2001, the Federal Reserve moved to lower interest rates. This was intended to
A. increase aggregate demand. B. decrease aggregate supply. C. increase aggregate supply. D. decrease aggregate demand.