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Author Question: Structural unemployment occurs when: a. automation reduces the need for welders in Detroit. b. ... (Read 193 times)

Diane

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on: Jun 30, 2018
Structural unemployment occurs when:
 a. automation reduces the need for welders in Detroit.
 b. frictional unemployment exceeds 5 percent of the labor force.
 c. steelworkers are laid off due to a downturn in the economy.
 d. a person leaves a job to seek a better position and has not yet found the job he or she wants.

Question 2

What are the three categories of transactions in the balance of payments? Give an example of each.


juicepod

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

The current account includes records of trade of goods and services, investment income, and unilateral transfers. The purchase of American machinery by a foreign firm is recorded here. The capital account records changes in the ownership of real and financial assets. The sale of IBM stock to a foreign investor is recorded here. The official reserve account records changes in currency holdings of the central bank. If the United States reduces its currency holdings by supplying foreign currency to the foreign exchange market, this transaction is recorded in the official reserve account.


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