Which of the following offers an example of frictional unemployment?
a. The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-tern decline in horse-and-buggy transportation.
b. The rise in unemployment among farm workers after harvest.
c. Unemployment resulting from the business cycle.
d. None of the above are correct.
Question 2
According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve intersects:
a. the vertical portion of the aggregate supply curve.
b. the upward sloping portion of the aggregate supply curve.
c. the horizontal portion of the aggregate supply curve.
d. either the upward sloping or the vertical portions of the aggregate supply curve.
e. either the horizontal or vertical portions of the aggregate supply curve.
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