Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If the economy is actually at Point C but policy makers think that it is still at Point B, this is an example of
A. response lag.
B. economic policies ineffectiveness.
C. implementation lag.
D. recognition lag.
Answer: D
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A change in perceived risk of a stock changes
A) the expected dividend growth rate. B) the expected sales price. C) the required rate of return. D) the current dividend.
Who among the following individuals is not an underemployed or a discouraged worker?
a. A person employed part-time but willing to work full-time b. A homeless person who has not found work for a year and has given up looking for jobs c. A nuclear physicist unable to work because of illness d. A gourmet French chef working part-time at Burger King e. A 60-year-old professor who has stopped looking for a teaching job because schools consider him too old
Holding other factors constant, if a tax increase moves the government budget from deficit to surplus, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; not change B. decrease; decrease C. decrease; increase D. increase; increase
A worker who loses a job at a call center because the company moved the call center operations to another country is an example of:
A. Frictional unemployment B. Structural unemployment C. Cyclical unemployment D. Disguised unemployment