Unemployment insurance payments act as automatic stabilizers by:
a. allowing for more consumer spending during prosperity.
b. making the unemployment rate worse during a recession.
c. allowing for more consumer spending during a recession.
d. changing the Phillips curve to a Laffer curve.
b
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What happens to the price elasticity of demand moving down along a downward-sloping, linear demand curve?
What will be an ideal response?
When a firm produces a product that creates external costs
A) the firm produces a level of output larger than would be produced without the external cost. B) the firm produces a level of output smaller than would be produced without the external cost. C) the firm produces a level of output which would be the same as it would produce without the external cost. D) the market provides the efficient level of output even with the existence of the external cost.