Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is

During a recession, the

A) cyclical rate of unemployment is positive. B) natural rate of unemployment has fallen. C) cyclical rate of unemployment is zero. D) cyclical rate of unemployment is negative.

What do we assume about households and firms?

A) They act irrationally. B) They do what the government tells them to do. C) They look after each other. D) They optimize.