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a. Shows the percentage of the population that is considered
unemployed.
b. Is the amount of the labor force that is not working
c. Is the amount of people in the population that are not working
d. Shows the percentage of the labor force that is considered
unemployed.
16.
When the Federal Reserve increases the discount rate as a
part of a contractionary monetary policy, there is;
a.
b.
c.
d.
A decrease in the money supply and an increase in the interest rate
A decrease in the money supply and a decrease in the interest rate
An increase in the money supply and a decrease in the interest rate
An increase in the money supply and an increase in the interest rate
17.
Suppose the economy is in long run equilibrium, the Fed
decides to increase the discount rate, in the short run, this
contractionary monetary policy will cause;
a. A shift from SRAS 1 to SRAS2, and a movement to point A, with
a higher price level and same output
b. A shift from SRAS 2 to SRAS 1 and a movement to point B, with
a lower price level and a higher output
c. A shift from AD2 to AD1 and a movement to point D with a lower
price level and lower output
d. A shift from AD1 to AD2 and a movement to point B with a higher
price level and higher output