An Increase in the Number of Discouraged Workers in the Economy

question 252

Multiple Choice

An increase in the number of discouraged workers in the economy tends to:

• A)raise the official unemployment rate.
• B)lower the official unemployment rate.
• C)lower the number of people who are frictionally unemployed.
• D)increase the number of people who are structurally unemployed.

Identify the factors that influence the velocity of money and its impact on the economy.

Analyze the long-term effects of monetary policy on the price level, real GDP, and potential output.

Understand how changes in aggregate demand and supply affect equilibrium, potential output, and gaps (expansionary and contractionary).

Describe the long-run neutrality of money and its implications for inflation, unemployment, and real GDP.