The unemployment rate may overestimate the true extent of unemployment if:
a. many part-time employees would like to work full-time, but are unable to get the additional work.
b. many people become discouraged and cease looking for work
c. people falsely claim that they are actively seeking work in order to receive unemployment benefits.
d. all of the above
c
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An increase in the money supply will
A) decrease the quantity of money held at every interest rate. B) increase the quantity of money held at every interest rate. C) shift the LM curve leftward. D) None of the above.
What is the economic reasoning behind the proposal to legalize drugs?
a. Legal drugs will greatly increase the supply, which will reduce the price Americans pay to foreign producers of the drugs. b. All forms of government restrictions on behavior are immoral, and ought to be removed. c. Legal drugs will be much cheaper than illegal drugs, which will reduce incentive for crime to obtain money for drugs and to protect drug "businesses." d. Legal drugs will be more expensive than illegal drugs, and the market system will encourage more production, thus lowering the price. e. Dealing with supply is always easier than dealing with demand, and legalization accomplishes that.