The payment of unemployment compensation tends to induce business firms to
A) lay off workers as opposed to lowering sales.
B) search for new workers for shorter periods of time.
C) lay off workers as opposed to increasing inventories and/or reducing hours worked for all employees.
D) recall previously laid off workers more rapidly.
C
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Refer to Figure 2-9. Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited for growing either fruit. Which of the graphs in Figure 2-3 represents his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph B E) either Graph B or Graph C
According to the short-run Phillips curve, inflation
a. and unemployment would fall if the policymakers decreased the money supply. b. would fall and unemployment would rise if policymakers decreased the money supply. c. and unemployment would fall if the policymakers increased the money supply. d. would fall and unemployment would rise if policymakers increased the money supply.