Author: Anonymous

In mid-January of this year, Al Bundy lost his job as a salesman at a local shoe store. The Christmas shopping season had recently ended and most of the gift returns and exchanges had been processed. The owner of the shoe store told Al that his labor services were no longer needed. Which type of unemployment best describes Al’s situation?

According to the diagram of the stereotypical business cycle, when the economy enters into a period of contraction, we observe:

According to Say’s Law, all goods produced will be sold:

Suppose the US dollar appreciates against foreign currencies. How will the US economy be impacted by this event?

  On the diagram of the stereotypical business cycle, the peak is represented by:

Suppose the University of Michigan’s Survey of Consumers reports a three consecutive month increase in measures of consumer confidence in the health of America’s economy. How will the US economy be impacted by this event?

  On the diagram of the stereotypical business cycle, the expansionary phase is represented by:

Suppose that China, one of America’s largest trading partners, experiences a severe recession where millions of Chinese citizens lose their jobs. How will the US economy be impacted by this event?

Viewpoint #1: Supply creates its own demand.Viewpoint #2: Demand creates its own supply.

Which of the following is most likely to reduce the level of cyclical unemployment?