If a Sizable Number of Workers Were Switched from Full-Time

question 77

Multiple Choice

If a sizable number of workers were switched from full-time to half-time employment, then the official unemployment rate would:

• A) rise.
• B) fall.
• C) remain unchanged.
• D) react unpredictably.

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Definitions:

Household Wealth

The total value of all financial and non-financial assets owned by members of a household minus any liabilities.

Consumption Function

An economic formula that expresses the relationship between total consumption and gross national income.

Price Level

An index that measures the average of prices for goods and services in an economy over a period, often used to assess inflation or deflation.

Disposable Income

The leftover money for households to use in savings and for buying things, once income taxes have been considered.