ECON 1202 Chapter 8 Questions Answered Correct.

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure? - structural - natural - cyclical - frictional - Answer cyclical Analysts believe that generous unemployment benefits in Europe are associated with: - weak labor unions in Europe. - high unemployment rates in Europe. - low unemployment rates in Europe. - relatively constant levels of unemployment in Europe. - Answer high unemployment rates in Europe. Indicate whether the following change will raise or lower the natural rate of unemployment. Greater access to the Internet leads both potential employers and potential employees to use the Internet to list and find jobs. - lower -raise - Answer lower If wages grew at 5% last year and average prices grew at 3%, then the average worker: - is worse off. - has lost purchasing power. - is unaffected. - is better off. - Answer is better off There are several ways in which the government can fund its spending. Which one is likely to lead to hyperinflation?