In the situation shown by this graph, what will be the most likely result of the fiscal policy on employment?
a. The unemployment rate will fall.
b. The unemployment rate will rise.
c. The unemployment rate will remain unchanged.
d. The unemployment rate will move unpredictably.
b. The unemployment rate will rise.
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Gross public debt is the amount of funds that
A) U.S. residents owe to foreign residents. B) the federal government owes to all holders of U.S. securities. C) the federal government owes to taxpayers. D) states owe to the federal government.
Making a decision "on the margin" involves comparing:
A. additional benefits against additional costs. B. total benefits against total costs, which include benefits and costs from past decisions. C. sunk costs against opportunity costs. D. the most benefit you could expect to get without considering costs.