An unexpected increase in aggregate demand causes
A. simultaneously the price level to rise and the unemployment rate to fall.
B. simultaneously the price level to fall and the unemployment rate to fall.
C. the price level to rise, but the duration of unemployment will remain constant, so the unemployment rate remains constant.
D. the unemployment rate to fall, with no change in the price level.
Answer: A
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The primary deficit is equal to
A) outlays - tax revenues. B) government purchases + transfers + net interest - tax revenues. C) outlays + net interest - tax revenues. D) government purchases + transfers - tax revenues.
One method unions use to ration available jobs among excess workers is
A) lengthy apprenticeships. B) to hire only white collar workers. C) collective bargaining. D) refuse to unionize.