An economic recession produces
A) a decrease in cyclical unemployment.
B) an increase in structural unemployment.
C) a decrease in natural unemployment.
D) an increase in cyclical unemployment.
E) an increase in natural unemployment.
D
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Markets can fail to achieve efficiency when
a. there are prices consumers do not think are fair. b. there are wages workers do not think are fair. c. trade puts people out of work. d. there are buyers or sellers without adequate information about the quality of goods.
Assume the Keynesian transmission mechanism is operational and the economy is currently operating in the horizontal portion of the AS curve. If the money supply decreases and the demand for money curve is downward sloping and investment is interest-____________, then Real GDP will ___________________
A) sensitive; fall B) insensitive; fall C) sensitive; rise D) insensitive; rise E) sensitive; remain unchanged