If input prices are not "sticky," changes in aggregate supply will quickly eliminate any unemployment caused by a change in aggregate demand.
Correct Answer:
Verified
Q15: An increase in government spending or taxes
Q16: During a downturn in the business cycle,
Q17: Job training programs are probably necessary to
Q18: The unemployment problem is more severe in
Q19: For the individual, the output lost during
Q21: In order to be considered unemployed, an
Q22: The natural rate of unemployment:
A) changes slowly
Q23: The target rate of unemployment is currently
Q24: An increase in cyclical unemployment would most
Q25: The unemployment rate is defined as:
A) the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents