When There Is an Increase in the Duration of Unemployment

question 43

Multiple Choice

When there is an increase in the duration of unemployment, the U.S. Congress typically responds by

• A) lowering income taxes.
• B) extending unemployment benefits.
• C) encouraging unemployed U.S. workers to seek employment overseas.
• D) redefining "unemployed" so the unemployment rate does not look so bad.

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Definitions:

Production

The method of producing goods and services by merging labor, land, and capital.

Capital Stock

The total amount of physical goods and financial assets that contribute to the production of goods and services in an economy.

Intangible Assets

Non-physical assets such as patents, copyrights, brands, and goodwill that have value for a business.

Inventories

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.