Unemployment,at the Aggregate Level

question 45

Multiple Choice

Unemployment,at the aggregate level.,

• A) is avoidable.
• B) is part of a well-functioning economy.
• C) is always a sign of market failure.
• D) would not happen with good policy.

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Definitions:

SUTA

State Unemployment Tax Act; a payroll tax that employers pay to fund their state's unemployment insurance.

FICA-OASDI

The Federal Insurance Contributions Act, also known as Old Age, Survivors, and Disability Insurance, is a payroll tax which finances Social Security and Medicare programs within the United States.

SUTA

State Unemployment Tax Act, which requires employers to contribute to the state unemployment insurance program.

Form 940

A form utilized by employers to declare their yearly tax under the Federal Unemployment Tax Act (FUTA) to the IRS.