Describe the personal and social costs of unemployment.
What will be an ideal response?
Unemployment extracts personal and social costs. The personal cost comes in the form of the lower financial capacity to support personal goals, dependents, or family members. This diminished financial capacity contributes to the loss of self-esteem, morale, and household disintegration. In the extreme, it can contribute to health problems and possibly suicide. At the social level, the cost arises because unemployment can lead to social unrest and political upheaval.
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The Fed conducts an open market operation and increases a bank's excess reserves by $2,000
Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.
When people decorate the exteriors of their homes with colored lights, they create ________ for the motorists who pass by
A) an external benefit B) a competitive good C) a public good D) an excludable good