Structural unemployment is caused bya. short-term changes in the economy. b. temporary layoffs in industries such as construction. c. hifts in the economy that make certain job skills obsolete. d. the impact of the business cycle on job opportunities.2. which of the following statements is true? a. according to supply-side fiscal policy, lower tax rates would shift the aggregate demand curve to the right, expanding the economy and creating some inflation. b. to combat inflation, keynesians recommend lower taxes and greater government spending. c. the presence of the automatic stabilizers tends to destabilize the economy. d. above the optimal tax rate, a reduction in tax rates along the downward-sloping portion of the laffer curve would increase tax revenues.

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Trade will take place: a. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good. b. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. c. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good. d. none of the above.

An economic theory that calls for workers to take control of factories is .