Firms Report That Their Workers Are Working Six Hours of Overtime

question 256

Multiple Choice

Firms report that their workers are working six hours of overtime per week. The government reports that the unemployment rate is 3.5%. In this situation, the multiplier is likely to be

• A) negative.
• B) large.
• C) small.
• D) infinitely large.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in an open and competitive marketplace.

Loss Carry-Back

Using a year’s capital losses to offset capital gains of previous years.

Capital Losses

Losses incurred when a capital asset is sold for less than its purchase price.

Capital Gains

The profit earned from the sale of an asset or investment that has increased in value.