Suppose that the size of the labor force is 100 million and that the unemployment rate is 5 per cent. Which of the following actions would reduce the unemployment rate the most?
A. 1 million unemployed people get jobs
B. 2 million unemployed people leave the labor force
C. 3 million people join the labor force and they all get jobs
D. 10 million people join the labor force and half of them get jobs
Ans: B. 2 million unemployed people leave the labor force
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Refer to the above figure. If the price level is 80
A) the total planned real expenditures by individuals, businesses, and the government are less than total planned production by firms. B) the aggregate demand curve will automatically shift leading to a stable equilibrium. C) the economy will have economic growth and the new equilibrium price level will be 80. D) the total planned real expenditures by individuals, businesses, and the government exceed total planned production by firms.
Economists argue that the level of pollution should be
A) reduced completely to zero because by definition, it has a negative external effect. B) ignored because it has always been present since the beginning of history. C) best determined by elected officials who can speak on behalf of the public. D) reduced to the point where the marginal benefit of pollution reduction is equal to the marginal cost of pollution reduction to society.