Which of the following is true?
a. A depression is a recession that is mild and relatively brief
b. The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude.
c. The timing of business fluctuations is regular and therefore easily predictable.
d. During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.
b
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Recent proposals for immigration reform that have drawn intense political fire include the following, except:
A. Increase fines for employers who knowingly hire illegal immigrants B. Implement a new amnesty program for illegal immigrants C. Shift immigration quotas away from family ties toward education-level and skills D. Create a guest-worker program with a tight cap
A worker has negotiated a nominal wage contract with his employer for a period of 3 years. Which of the following will happen if the rate of inflation rises beyond the worker's expectation during this period?
A) The worker's real wage will increase. B) The worker will be better off. C) The company's shareholders will be worse off. D) The worker will be worse off.
Nominal GDP, PY, is $7.5 trillion. The quantity of money is $3 trillion. The velocity of circulation is
A) 22.5. B) 10.5. C) 2.5. D) 3.
The more excess reserves banks choose to keep
A) the lower the required reserve ratio. B) the smaller the deposit multiplier. C) the larger the deposit multiplier. D) the higher the required reserve ratio.