What is the effect of an increase in unemployment benefits on the unemployment rate?
What will be an ideal response?
An increase in unemployment benefits decreases the overall costs of being unemployed. As a result it increases the length of time unemployed workers search for a new job and hence increases the unemployment rate.
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Other things remaining the same, which of the following is likely to cause a left shift in the supply curve for labor?
A) A decrease in population B) An increase in population C) A decrease in the demand for the final product that the labor is used to produce D) An increase in the demand for the final product that the labor is used to produce
How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP)?
a. GNP = GDP - losses from depreciation b. GNP = GDP + income earned by U.S. citizens abroad - income that foreign citizens earned in the U.S. c. GNP = GDP + transfer payments to households + - indirect sales taxes d. GNP = GDP - depreciation - retained earnings