Explain how the labor force participation rate, the unemployment rate, and the percentage of the labor force employed part time change in a recession
What will be an ideal response?
The labor force participation rate tends to decrease during a recession as more workers become discouraged. The unemployment rate increases during a recession because there are fewer jobs. The percentage of the labor force employed part time tends to increase during a recession as part-time workers for economic reasons increase.
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Refer to the above table. Which variables in the table are NOT autonomous?
A) planned consumption and planned saving B) planned saving only C) taxes, government spending, and saving D) planned investment, net exports, and government spending
Financial deregulation and innovation since the late 1970s has made spending, especially new housing, ________ sensitive to changes in the market interest rate, leading to a ________ IS curve
A) more, steeper B) more, flatter C) less, steeper D) less, flatter