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.
Correct Answer:
Verified
Q37: Job loss without destruction occurs when
A) students
Q38: In normal times, when the economy is
Q39: Flows out of unemployment have several characteristics,
Q40: In a market where firms operate according
Q41: Economic theory suggests that, during a recession,
Q43: The incentive to increase employment when the
Q44: Suppose that the gap between potential GDP
Q45: Which of the following would help make
Q46: The incentives to restore full employment present
Q47: The recent decrease in the natural rate
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