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.
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