Which of the following events would increase the unemployment rate, if nothing else changed?
A. Unemployed workers become employed
B. Workers from outside the labor force become employed
C. Employed workers leave the labor force
D. Unemployed workers leave the labor force
Answer: C
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By analyzing aggregate demand through its component parts, we can conclude that, everything else held constant, a decline in the inflation rate causes
A) an increase in real interest rates, an increase in investment spending, and a decline in aggregate output demand. B) a decline in real interest rates, a decrease in investment spending, and an increase in aggregate output demand. C) a decline in real interest rates, an increase in investment spending, and an increase in aggregate output demand. D) an increase in real interest rates, a decline in investment spending, and a decline in aggregate output demand.
Which of these changes is likely to follow when the Fed purchases U.S. government securities? a. Aggregate demand will decrease
b. The demand for financial securities will increase. c. Rate of interest will increase. d. Planned investment spending will increase. e. Real GDP will decrease.
The most efficient point on the production possibilities curve is the midpoint on the curve
a. True b. False Indicate whether the statement is true or false
For how many years does a Federal Reserve governor serve on a term?
a. 7 b. 10 c. 12 d. 14