Author Question: The economic cost of unemployment is the loss of potential output which can never be realized. a. ... (Read 119 times)

tth · **on:** Jun 30, 2018

The economic cost of unemployment is the loss of potential output which can never be realized.
a. True
b. False
Indicate whether the statement is true or false

Question 2

In the U.S. economy, the effect on federal tax revenues and spending of an increase in the unemployment rate is to:
a. cut tax revenues and raise expenditures.
b. cut expenditures and raise tax revenues.
c. raise both tax revenues and expenditures.
d. cut both expenditures and tax revenues.