In an economic expansion, people used their charge cards to purchase many goods. Now the economy is in a recession and people must use much of their reduced incomes to pay back debts. If employees manufacturing the goods people used to buy are laid off, they will suffer from:
A. cyclical unemployment.
B. structural unemployment.
C. permanent unemployment.
D. frictional unemployment.
Answer: A
You might also like to view...
An exchange of developing country debt for an ownership position in a developing country business is called
A) IMF conditionality. B) indirect investment. C) debt-equity swap. D) debt-rescheduling.
Which of these is NOT a generally accepted means of reducing risk?
A) Diversification B) Insurance C) Obtaining more information D) none of the above
As firms find themselves producing closer to their maximum capacities, the most likely outcome would be that the economy's
a. investment curve will shift upward b. investment curve will shift downward c. consumption curve will shift downward d. consumption curve will shift upward e. position along the existing consumption curve will move upward
Monetarists believe that
a. velocity is independent of the money supply b. the transactions demand for money influences the velocity of money c. the economy does not always operate at full employment d. velocity is constant if the money supply is constant e. velocity varies directly with the money supply