Author Question: If the source of economic instability is generally variations in spending, then the Fed should A) ... (Read 30 times)

asd123 · **on:** Jun 30, 2018

If the source of economic instability is generally variations in spending, then the Fed should

A) buy gold. B) raise taxes.
C) set money supply targets. D) print more money.

Question 2

In an economy, the number of potential workers is 60,000, the size of the labor force is 45,000, and the number of employed workers is 39,000. Calculate the unemployment rate and labor force participation rate in the country.

What will be an ideal response?

janeli1 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

Unemployment rate in the country = (Labor force - employed workers)/Labor force
= (45,000 - 39,000)/45,000 = 13.33.
Labor force participation rate in the country = Labor force/potential adult workers
= 45,000/60,000 = 75.