Some people drop out of the labor force during times of recession:
A. to go back to college, because the opportunity cost is lower during a recession.
B. because they cannot find work and give up trying.
C. and decide to take early retirement.
D. All of these are true.
D. All of these are true.
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Suppose the current level of output is 5000 and the elasticity of output with respect to capital is 0.4. A 10% increase in capital would increase the current level of output to
A) 5020. B) 5050. C) 5200. D) 5500.
Refer to Figure 10.7. A movement from point D to point C could be caused by
A) a positive demand shock. B) an increase in the term premium investors expect in the future. C) an increase in the term structure effect. D) an increase in the expected rate of inflation.
When the Fed engages in quantitative easing, it alters ______________________ and when the Fed makes open market purchases it alters _______________________
A) short-term interest rates; long-term interest rates B) long-term interest rates; short-term interest rates C) the required reserve ratio; income tax rates D) income tax rates; the required reserve ratio
The political technique called logrolling:
A. always increases economic efficiency. B. always decreases economic efficiency. C. involves trading votes to secure favorable outcomes that otherwise could be rejected. D. is an example of the paradox of voting.