QA Cyclical unemployment is

1. not one of the three types of unemployment.
2. unemployment caused by time delays in matching available jobs with workers.
3. unemployment caused by changes in the industrial makeup of an economy.
4. when a worker stops looking for a job because he or she feels no job is available.
5. unemployment caused economic downturns.

QB which of the following is included in the investment category of gross domestic product (GDP)

1. interest in the national debt:
2. welfare payments
3. payments to people in the military
4. social security payments
5. new houses built

QC Assume a pandemic hits a nation hard. As a result, firms are less confident about the economy. The most likely result would be.

1. a higher demand for loanable funds
2. a higher supply of loanable funds
3. an increase in equilibrium interest rates
4. a lower demand for loanable funds
5. higher productivity of capital

QD the government can assist in reducing the level of frictional unemployment by

1. proving unemployment insurance
2. relaxing government regulations on hiring employees
3. taxing employers who hire low-skilled workers
4. providing job training programs
5. incentivizing companies to update their current technology

QE inflation is best described as when

1. all prices in the economy falls
2. the prices of some goods rise and prices of some goods fall, but more goods have price increases than decreases.
3. the prices of some goods rise and prices of some goods fall, but fewer goods have price increases than decreases.
4. the overall level of prices of goods and services falls
5. the overall level of prices of goods and services rises.