If an Economy Has Just Had a Serious Recession but Real

question 3

Multiple Choice

If an economy has just had a serious recession but real GDP is expanding once again, we can expect the unemployment rate to:

• A) fall immediately.
• B) rise immediately.
• C) rise if people who were previously discouraged enter the work force but do not find jobs right away.
• D) fall if people who were previously discouraged enter the work force but do not find jobs right away.

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Definitions:

Third-degree Price Discrimination

A pricing strategy where a firm charges different prices to different groups of consumers for the same product, based on their willingness to pay.

Tennis Lessons

Instruction or training sessions focused on improving a person's skills and understanding of the game of tennis, offered by professionals or experienced players.

Producer Surplus

The discrepancy between the amount sellers are prepared to take for a product or service and the actual payment they get.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual market price they pay.