For a Given Negative Economic Shock,an Economy with Higher Labor

question 53

Multiple Choice

For a given negative economic shock,an economy with higher labor adjustment costs will have a:

• A) higher economic growth rate.
• B) smaller effect on employment.
• C) higher unemployment rate.
• D) shorter recession.

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Definitions:

Full Potential

The highest level of achievement or performance that an individual, group, or organization can possibly reach.

PACs

Political Action Committees; organizations that collect funds to donate to political campaigns or to spend on issues of advocacy.

Volunteer Contributions

Unpaid efforts or services provided by individuals willingly to benefit others or a community.

Biannually

Occurring twice a year; also known as semiannual.