If the economy is underutilizing its economic resources, the Fed should
A) discourage investment spending.
B) expand the money supply to increase aggregate demand.
C) decrease aggregate supply.
D) contract the money supply to decrease aggregate demand.
B
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Which of the following increases frictional and/or structural unemployment?
i. more young workers entering the labor force ii. more generous unemployment benefits iii. a structural slump with some industries dying A) iii only B) i and ii C) ii only D) i, ii. and iii E) i only
Define microeconomics
What will be an ideal response?
A cut in the income tax rate designed to encourage household consumption is an example of:
(a) Expansionary demand-side policy; (b) Contractionary demand-side policy; (c) Expansionary supply-side policy; (d) Contractionary supply-side policy.
Graph of a labor market with effective minimum wage:
What will be an ideal response?