Analysis that addresses the question of whether a policy should be used is called ________ analysis.

The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?

A) No, the recession will have no impact on my ability to get a job or my future income. B) No, the recession will most likely be short-lived and I can get a job after it is over. C) Yes, the recession will lower income in my field permanently. D) Yes, the recession will ensure that you will never find a job as a programmer.

Why does unemployment tend to change when the level of output changes?

A. Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output. B. Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls. C. As output rises, more people are more interested in buying goods and services, and so these people work more to obtain the income needed to buy things. D. Persons face the option of buying or working, so that when they do more of one, the other necessarily falls. E. When companies replace workers with machines, output rises and people take more vacation time prior to returning to work.