In 2014, a devastating typhoon hit the Philippines, destroying roads and buildings, and killing thousands of people. How will this natural disaster impact the U.S. economy in the short run? Choose one: O A real GDP will decrease; price level will decrease; unemployment will decrease O B. real GDP will increase; price level will increase; unemployment will decrease OC. real GDP will decrease; price level will decrease; unemployment will increase O D. real GDP will increase; price level will increase; unemployment will increase

Macroeconomic indicators can be categorized as "leading" or "lagging". Which one in the list below is not a lagging indicator? Select one: O O a. The Consumer Price Index b. Labor market statistics c. Commodity prices d. Retail Sales

Economists use the neoclassical growth model to explain fluctuations in the business cycle because can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. O cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O

uestion 3 How will an increase in labor productivity affect equilibrium in the labor market? O The demand for labor will decrease because fewer workers will be needed to produce the same output. The equilibrium wage and quantity of labor will decrease. O The demand for jobs will increase and the equilibrium wage and quantity of labor will increase. O The supply of labor will increase and the equilibrium wage and quantity of labor will increase. O The demand for labor will increase and the equilibrium wage and quantity of labor will increase.

A person may become unemployed as a result of cutbacks in a business's production. O True False