Cyclical unemployment arises when
A) unskilled or low-skilled workers find it difficult to obtain desirable, long-term jobs.
B) labor must be reallocated from industries that are shrinking to areas that are growing.
C) workers must search for suitable jobs and firms must search for suitable workers.
D) output and employment are below full-employment levels.
D
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In early 2008, the housing crisis and rising oil prices increased the risk of recession in the United States. What fiscal policy action was taken by Congress and the president to counter these events?
A) Income taxes were raised to reduce the federal budget deficit and reduce interest rates. B) Taxpayers were given rebates on taxes they already paid. C) There was an increase in government spending on defense and unemployment compensation. D) The Federal Reserve cut its target for the federal funds rate.
When Dr. Jay Rosenstein treats a rich 75-year-old retired farmer for pneumonia, the money he receives is part of the __________ category(ies) of government spending
a. Medicaid b. veterans' benefits c. agriculture d. health and hospitals e. income support, Social Security, and welfare