Unemployment
a. rises during expansions.
b. falls when households save a larger fraction of their income.
c. decreases as production falls.
d. moves in the opposite direction as real GDP.
Ans: d. moves in the opposite direction as real GDP.
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Which of the following societies is the most likely to have a traditional economy?
a. The United States. b. The Inuit (native people of Northern Canada). c. Cuba under Castro's rule. d. Modern-day Hong Kong.
Why do the regulated companies oppose deregulation?
a. They would be deprived of an opportunity to compete with other firms. b. They would be deprived of their rights to continue business. c. They would be denied any kind of support from the government. d. They would incur losses on account of increased competition. e. They would become unpopular as they would no longer be controlled by the government.