Define and give an example of how a spell of frictional unemployment can begin
What will be an ideal response?
Frictional unemployment is the unemployment resulting from normal turnover in the labor market. For instance, there are always people entering or reentering the labor force (entrants and reentrants) and while these people look for work, they are frictionally unemployed. Similarly, there are always some people who quit their jobs to look for something better, and these people are frictionally unemployed. And, there is always a normal ebb and flow among firms as some gain sales while others lose them. The firms that lose business might release workers and these people also are frictionally unemployed.
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Expansionary fiscal policy
A) raises Real GDP more in an open economy than in a closed economy. B) raises Real GDP more in a closed economy than in an open economy. C) raises Real GDP equally in an open economy and in a closed economy. D) does not affect Real GD"P in an open economy.
A fashion fad significantly increases the demand for fedora hats. Which of the following would most likely be the result?
a. The price of fedoras would plummet. b. The production of fedoras would decline. c. Sellers would discount the price of their existing supply of fedoras. d. Buyers would compete fiercely to buy a limited quantity of fedoras.