FINAL EXAM ercyclical that seeks to raise GDP growth and the level of employment
ID: 1126300 • Letter: F
Question
FINAL EXAM ercyclical that seeks to raise GDP growth and the level of employment is appropriate when countercyclical policy that OA. the nation has an international trade surplus O B. the economy is experiencing a recession. O C. excessively pessimistic sentiments about the economy are prevalent O D. all of the above. O E. B and C are correct 21. Which of the following is an example of what economists refer to as job search? O A. An individual that engages in the job hunt by determining who is hiring and how much they pay B. A person who applies for a high-paying job but does not qualify, so she begins searching for an appropriate position. ° C. People that engage in the job hunt by sending out resumes. D. All of the above. What type of unemployment does job search lead to? O A. Cyclical unemployment. O B. Structural unemployment O C. Frictional unemployment. OD, Search unemployment. During an economic downturn of any duration,Explanation / Answer
20. Countercyclical policy reduce the intensity of economic fluctuations by smoothing the growth rate of employment, GDP, prices. It is appropriate when the economy is experiencing a recession(when GDP growth and level of employment is very low) and when excessively pessimistic sentiments about the economy are prevalent.
Answer- option E
21. Job search refers to activities that workers undertake to find appropriate jobs. All of the three options(option A,B,C) given in the question are examples of job Search.
Answer- option D
22. The unemployment that occurs due to job search and workers' habit of leaving one job for better one(moving between jobs), is known as frictional unemployment. Friction is the time, effort, expenses to the worker to find a new job.
Graduating students entering the work force is an example of frictional unemployment.
Answer- option C
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