The type of unemployment associated with recessions is called:

Total utility decreases when diminishing marginal utility is present

a. True b. False Indicate whether the statement is true or false

Based on the Laffer Curve, a cut in the tax rate from 100 percent to a rate lower than the maximum-revenue rate will:

A. Decrease real GDP B. Increase tax revenues C. Decrease tax revenues D. Have no effect on tax revenues