A Negative Shock to Aggregate Demand Will Lead to a Higher

question 32

Multiple Choice

A negative shock to aggregate demand will lead to a higher unemployment rate if:

• A) time bunching in economic activity is lower.
• B) intertemporal substitution in labor supply is lower.
• C) investments are more easily reversible.
• D) labor adjustment costs are higher.

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Definitions:

Relevant Information

Data or facts that are pertinent and useful to the understanding, decision-making, or problem-solving process regarding a specific situation or subject.

Anthropodenial

The refusal to acknowledge human-like traits, emotions, or behaviors in non-human animals.

Anthropomorphism

The attribution of human characteristics or behavior to a god, animal, or object.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can hinder performance in a variety of settings.