During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this
A) increases the official U-3 unemployment rate.
B) decreases the official U-3 unemployment rate.
C) does not change the official U-3 unemployment rate.
D) increases the official U-3 unemployment rate and the labor force participation rate.
B
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Mutually beneficial trade will occur whenever the exchange rate between the goods involved is set at a level where: a. each country can export a good at a price below the opportunity cost of producing the good in the domestic market. b. each country can import a good at a price below the opportunity cost of producing the good in the domestic market. c. the exchange ratio is exactly equal to
the opportunity cost of producing the good in each country. d. each country will specialize in the production of those goods in which it has an absolute advantage.
Which of the following will reduce the velocity of circulation of the money stock?
a. The inflation rate increases. b. The interest rate falls. c. Credit cards are used more frequently. d. More employees are paid once a week instead of once a month.