An Increase in Unemployment,ceteris Paribus

question 101

Multiple Choice

An increase in unemployment,ceteris paribus,

• A)Leads to decreased government expenditures.
• B)Leads to increased government revenues.
• C)Reduces a budget surplus.
• D)Reduces a budget deficit.

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Definitions:

Technology Spillover

An external benefit that results when knowledge spreads among individuals and firms.

Marginal Social Cost

The complete expense incurred by society for the production of one more unit of a product or service.

Public Park

A piece of public land in urban areas designated for recreational use by the general public, often maintained by local government.

Socially Optimum

A state where resources are allocated in the most efficient way from a societal perspective, maximizing social welfare.