In 1933 the unemployment rate was about 25%. This percentage
(a) is probably quite accurate because the data on unemployment collected by the federal government was quite good at the time.
(b) is probably too high because some people with jobs claimed to be unemployed so
that they could collect unemployment compensation payments.
(c) is probably too low because there were discouraged and underemployed workers.
(d) is probably meaningless because the data on unemployment was either very poor
or nonexistent.
(c)
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Recently, the government made adjustments to how GDP is calculated that included placing software purchases into the category of
A) intermediate goods because software is not a final good. B) inventory and now software purchases are not directly counted as part of GDP. C) investment and now directly counts software purchases as part of GDP. D) net exports of goods and services because most software is written abroad. E) net operating surplus.
During an inflationary period caused by excessive aggregate expenditure, which type of government budget would most effectively combat inflation?
a. a deficit budget b. a balanced budget c. a surplus budget d. a full-employment budget