Needs-Tested Spending

question 13

Multiple Choice

Needs-tested spending

• A)increases as real GDP increases.
• B)makes recessions more severe.
• C)increases as unemployment increases.
• D)decreases as unemployment increases.
• E)decreases in recession.

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Definitions:

Technological Change

The development and application of new processes, tools, and machines, leading to more efficient production methods.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Marginal Product

The additional output that is produced by adding one more unit of a specific input while holding all other inputs constant.

Market Wage

The prevailing wage rate paid for a specific job in the labor market, determined by the supply and demand for that type of labor.