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Unformatted text preview: , what is the long-run expenditure multiplier?
____ 34. Renee plans to graduate and enter the job market in the spring. Economists are forecasting a recession during
the spring. As a result, she
a. is happy because unemployment rates are low during a recession
b. is happy because salaries are usually higher during a recession
c. does not care because the availability of jobs is not affected by whether there is a recession
d. is unhappy because it is generally difficult to find a job during a recession
e. favors increasing taxes to help head off the recession
____ 35. The reason the short-run macro model suggests that the economy can operate either above or below its
potential while in the long-run classical model the economy operates automatically at full employment is that...
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- Spring '13