If the economy is in a recessionary gap,
A) Real GDP is greater than Natural Real GDP.
B) Real GDP is equal to Natural Real GDP.
C) Real GDP is less than Natural Real GDP.
D) the (actual) unemployment rate is less than the natural unemployment rate.
E) a and d
C
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When the Fed supplies the banking system with an extra dollar of reserves, deposits increase by more than one dollar—a process called
A) extra deposit creation. B) multiple deposit creation. C) expansionary deposit creation. D) stimulative deposit creation.
Refer to the above information. Which individual would be classified as a discouraged worker?
The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment. 1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month, but still has not gotten a job offer. 2. George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve. 3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills. 4. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work. A. Mollie B. George C. Jeanette D. Ricardo