Policies That Make It More Difficult to Fire an Employee

question 6

Multiple Choice

Policies that make it more difficult to fire an employee are likely to:

• A)lead to greater unemployment.
• B)lead to less unemployment.
• C)have no impact on unemployment.
• D)affect those frictionally unemployed more profoundly than other unemployed workers.

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Definitions:

Increase in V

In economic contexts, often refers to an increase in the velocity of money, which is the rate at which money is exchanged in an economy.

Unemployment

The situation in which individuals who are capable of working and willing to work cannot find employment.

Monetarists

Economists who believe that changes in the money supply are the most significant determinants of economic growth, inflation, and unemployment rates.

Quantity Theory of Money

The Quantity Theory of Money is an economic theory that asserts the general price level of goods and services is directly proportional to the amount of money in circulation.