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Even Though Recessions Cause Hardships for the Unemployed and the

Question 42

Multiple Choice

Even though recessions cause hardships for the unemployed and the
Economy in general, economists find at least two benefits arising from them.
One of these benefits is that


A) higher unemployment provides politicians a reason for prolonging deficit reduction measures.
B) firms have greater incentive to produce output since people have less than they want.
C) workers have less necessity to increase productivity since demand has fallen off.
D) firms have greater incentive to increase job creation since fewer people have jobs.
E) the opportunity costs of restructuring, both for firms and workers, are less.

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