The short-run aggregate supply curve is:
a. upward-sloping

The multiplier effect

A) explains what causes an expansion. B) has no impact on equilibrium expenditure. C) reinforces the negative effects of any reduction in spending. D) explains what causes a recession. E) explains how the economy recovers from a recession.

The principal benefit of unemployment insurance is that it

A. reduces the occurrence of unemployment in the economy. B. replaces income lost due to unemployment. C. increases labor force participation. D. helps reduce the period of unemployment.