Author Question: A decrease in aggregate demand and the subsequent cutbacks in production lead to: a. frictional ... (Read 61 times)

jenna1 · **on:** Jun 30, 2018

A decrease in aggregate demand and the subsequent cutbacks in production lead to:
a. frictional unemployment.
b. cyclical unemployment.
c. cost-push unemployment.
d. structural unemployment.
e. transitory unemployment.

Question 2

The marginal propensity to consume measures the ratio of the:
a. average amount of our income that we spend.
b. average amount of our savings that we spend.
c. change in consumer spending to a change in money holdings.
d. change in consumer spending to a change in interest rates.
e. change in consumer spending to a change in income.