An increase in the amount and time period for which unemployment compensation is paid will most likely

A) increase the structural rate of unemployment.
B) leave the natural rate of unemployment unchanged.
C) decrease the natural rate of unemployment.
D) increase turnover unemployment.


D

Economics

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The belief that wages are "sticky downwards" was held by:

A. Keynes, but not the classical macroeconomic theorists. B. neither Keynes nor the classical macroeconomic theorists. C. the classical macroeconomic theorists, but not Keynes. D. both Keynes and the classical macroeconomic theorists.

Economics

Suppose that households and businesses increase autonomous expenditures, driving output well above potential. Describe, in detail, how monetary policy might react to minimize the increase in inflation

What will be an ideal response?

Economics

Some labor union wage contracts contain a cost-of-living adjustment indexed against _____________.

a. inflation b. consumer prices c. cost of materials d. profits

Economics

In the U.S. taxes:

a. are higher as a share of GDP than in France b. rely more on sales taxes than on income taxes c. have higher shares of social security contribution than in Europe d. none of the above

Economics