If the economy is currently experiencing a high unemployment rate, the greatest cost is
a. extra government spending
b. rewarding those who do not work but collect government benefits
c. lost output
d. the cost of job searching
e. the extra cost of funding job fairs
C
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In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. D) aggregate supply would shift to SRAS1 and then return to SRAS0.
The relevant cost in economic decision-making is the opportunity cost of the resources rather than the outlay of funds required to obtain the resources
a. true b. false