Author Question: A disadvantage of functional finance is that it: a. does not focus on producing the potential level ... (Read 17 times)

cabate · **on:** Jun 30, 2018

A disadvantage of functional finance is that it:
a. does not focus on producing the potential level of output in an economy.
b. increases the level of unemployment during recessions.
c. allows chronic deficits that magnify into national debt, allowing it to reach an alarming level.
d. requires that the budget is balanced even during times of war.
e. magnifies fluctuations in the business cycle.

Question 2

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.
a. Seasonal
b. Cyclical
c. Voluntary
d. Structural
e. Frictional