When the economy goes into recession, the biggest increase in unem-ployment is _________
A. structural because jobs are lost in most states
B. cyclical because jobs are lost in many industries as they cut production
C. frictional because the creation of jobs slows
D. the combination of structural and frictional as few new jobs are created.
B Cyclical unemployment is the unemployment resulting from a recession.
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If real GDP for a given year is $2400 billion and nominal GDP is $2400,
A) this year is the base year for the GDP deflator. B) the GDP deflator for this year is 1.25. C) the GDP deflator for this year is 0.8. D) the GDP deflator for this year is 1.10.
In a non-cooperative, imperfect information, simultaneous-choice, one-period game, a Nash equilibrium
A) will never exist. B) will always include dominant strategies. C) will always result in both players taking the same action. D) may not maximize the sum of the firms' profits.