An economic recession produces A) a decrease in cyclical ...

[yoroshambo]

An economic recession produces
 
  A) a decrease in cyclical unemployment.
  B) an increase in structural unemployment.
  C) a decrease in natural unemployment.
  D) an increase in cyclical unemployment.
  E) an increase in natural unemployment.

Question 2

In the figure above, in the long run what happens if the Fed increases the quantity of money by 5 percent?
 
  A) The value of money rises by 5 percent.
  B) The nominal interest rate rises by 5 percent.
  C) The price level rises by 5 percent and the LRMD shifts leftward.
  D) The value of money falls by 5 percent and there will be a movement down along the LRMD curve.
  E) The real interest rate falls and the LRMD curve shifts rightward.

[atrochim]

Answer to Question 1

D

Answer to Question 2

D

[yoroshambo]

Thank you

[atrochim]

Happy to help you