For the recessions in the United States since the 1950s
A) unemployment rises on average about 5 percentage points during the 12 months after a recession begins.
B) unemployment falls on average by 2 percentage points during the 12 months after a recession begins.
C) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins.
D) cyclical unemployment has been non-existent.
Ques. 2Refer to Table 19-29. Based on the table above, what is national income for this economy?
A) 4,700 billion B) 4,000 billion C) 3,150 billion D) 2,450 billion
Ques. 3If inflationary expectations on the part of the public increase, the trade-off between inflation and unemployment becomes worse.
Indicate whether the statement is true or false
Ques. 4Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) not change interest rates. B) increase the inflation rate.
C) increase interest rates. D) decrease interest rates.
Ques. 5An increase in the money supply is a discretionary fiscal policy which will increase aggregate demand.
Indicate whether the statement is true or false
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