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Author Question: Explain how unemployment changes over the business cycle. Why do these changes occur? (Read 46 times)

Sufayan.ah

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Question 1

Figure 10-6









Refer to Figure 10-6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see?


◦ The quantity of loanable funds demanded by firms will rise above $120 million.
◦ The quantity of loanable funds demanded by firms will fall below $120 million.
◦ The budget deficit will have no impact on the quantity of loanable funds demanded by firms.
◦ The interest rate will fall below 4 percent.

Question 2

Explain how unemployment changes over the business cycle. Why do these changes occur?



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Marked as best answer by Sufayan.ah on Mar 16, 2019

bigsis44

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bigsis44

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