Unemployment is good from a social point of view because
A) it keeps wages in check.
B) it allows for better matches between workers and firms.
C) it provides free time.
D) it keeps the least efficient workers out.
Question 2
When a permanent negative supply shock hits the economy ________.
A) in the long-run, output is permanently lowered whether the central bank reacts or not
B) inflation decreases in the short-run
C) there is no long-run effect on inflation whether the central bank reacts or not
D) all of the above
E) none of the above
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