In a private closed economy where MPC = 0.8, if consumers reduce their spending by $10 billion and firms cut investments by $5 billion, then equilibrium real GDP will decrease by

Jonathan quit his job as a shoe salesman and is actively searching for employment in the field in which he has a bachelor's degree, accounting. Jonathan would best be categorized as

A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.

If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:

A. help the United States and hurt the other countries because the United States has a larger population. B. help all of the countries involved because every country would have a comparative advantage in the production of some goods. C. hurt all of the countries involved because all the countries are capable of producing anything that could be produced in one of the other countries. D. help the United States and hurt the other countries because the United States has more natural resources than the other countries.