Meredith Is Looking for Work as a Computer Programmer

question 69

Multiple Choice

Meredith is looking for work as a computer programmer.Although her prospects are good,she has not yet taken a job.Julie is looking for work in a steel mill.Every time she shows up for an interview,there are more people looking for work than there are openings.Someone waiting in line with her tells her it has been that way for a long time.

• A)Meredith and Julie are both frictionally unemployed.
• B)Meredith and Julie are both structurally unemployed.
• C)Meredith is frictionally unemployed,and Julie is structurally unemployed.
• D)Meredith is structurally unemployed,and Julie is frictionally unemployed.

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Definitions:

Aggregate Demand

The total quantity of goods and services demanded across all levels of an economy at a given price level and in a given time period.

Potential Output

The peak level of real GDP that can be maintained in the long run without causing inflation to rise.

Discretionary Fiscal Policy

Government policy involving changes in taxation and spending that are undertaken explicitly to influence economic activity.

Price Level

The econ-wide median price across the complete array of produced goods and services.