When aggregate expenditures fall below the full-employment level of output, which of the following types of unemployment is most likely to increase?
A. Seasonal.
B. Structural.
C. Cyclical.
D. Frictional.
Answer: C
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In October of 20142, the interest rate on money market accounts was about 0.2 percent. In 2007, the interest rate on money market accounts was about 4.0 percent
What has been the impact on the demand for money curve from this fall in the interest rate? A) the money demand curve shifted to the right B) the money demand curve shifted to the left C) there was a downward movement along the demand for money curve D) there was an upward movement along the demand for money curve
Full-employment output is the level of output that firms in the economy supply when
A) taxes are zero. B) wages and prices have fully adjusted. C) the unemployment rate is zero. D) all capital is fully utilized.