Unemployment increases when A) an inflationary gap is created. ...

[rlane42]

Unemployment increases when
 
  A) an inflationary gap is created.
  B) potential GDP increases.
  C) the government decreases its expenditure on goods and services.
  D) aggregate demand increases.
  E) aggregate supply increases.

Question 2

Real estate suitable for condominium development is also suitable for single-family home development. Therefore, a rise in the price of condominiums relative to single-family homes tends to
 
  A) increase the opportunity cost of building new single-family homes.
  B) reduce the demand for condominiums.
  C) increase the demand for condominiums.
  D) do none of the above.

[jordangronback]

Answer to Question 1

C

Answer to Question 2

A