Author Question: During the Great Depression, cyclical unemployment increased as the recession continued. This ... (Read 45 times)

Wadzanai · **on:** Jun 29, 2018

During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment

A) increased the natural rate of unemployment.
B) could have increased or decreased the natural rate of unemployment.
C) decreased the natural rate of unemployment.
D) had no effect on the natural rate of unemployment.

Question 2

When aggregate expenditure is more than GDP, which of the following is true?

A) Firms spent less on capital goods than they planned.
B) Households bought fewer new homes than they planned.
C) There was an unplanned decrease in inventories.
D) All of the above must be true when aggregate expenditure is more than GDP.