A temporary support for jobless workers introduced as a provision of the Social Security Act in 1935 is
a. the Civilian Conservation Corps
b. the Job Corps
c. employment supplements
d. supplemental security
e. unemployment insurance
E
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Do firms in a perfectly contestable market earn positive economic profit in the long run? Explain
What will be an ideal response?
Consider an economy in a long-run equilibrium with Y = 40 and ? = 3. A demand shock in period one causes output to rise to 45 and inflation rises to 4
Then, the updating of expected inflation to equal 4 causes output in period two to decline to 43.85, and inflation to rise to 4.77. Assuming no further shocks, calculate the values of output and inflation for period three.
An increase in energy prices is a likely cause of
A) Great Depression. B) Korean War inflation. C) the recession in 1973-1975. D) the Great Moderation.
Under a pure price system, the decision of resource allocation is made by
A) the head of the government. B) a queen or king. C) individuals who own the resources. D) no one.