The most significant real economic cost of high unemployment is:
a. the money cost of unemployment insurance payments to the unemployed.
b. the lost tax revenue that might have been paid by persons if they had worked.
c. the difference in income between a person's lost job and new job.
d. the potential goods and services that might have been produced but weren't.
Question 2
If the rate of inflation in the United States rises relative to the rate of inflation in foreign nations, U.S. net exports will tend to ____, causing the exchange value of the U.S. dollar to ____.
a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall
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