Matilda Just Graduated from College

question 115

Multiple Choice

Matilda just graduated from college.In order to devote all her efforts to college,she didn't hold a job.She is going to tour around the country on her motorcycle for a month before she starts looking for work.Other things the same,the unemployment rate

• A)increases,and the labor-force participation rate decreases.
• B)and the labor-force participation rate both increase.
• C)increases,and the labor-force participation rate is unaffected.
• D)and the labor-force participation rate are both unaffected.

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Definitions:

Income Velocity of Money

A measure of how quickly money in circulation is used for purchasing goods and services, calculated as the ratio of nominal GDP to a country's total money supply.

Non-interventionists

Advocates or policies favoring minimal political or military involvement by a country in international affairs.

Keynesian Economists

Economists who follow the principles of Keynesian economics, emphasizing the role government policy and fiscal measures play in managing economic cycles.

Discretionary Economic Policies

Economic policies based on judgment or choice rather than set rules, often involving government intervention in the economy through spending and taxation decisions.