The government can reduce unemployment or reduce inflation by: ...

[formula1]

The government can reduce unemployment or reduce inflation by:
 a. manipulating aggregate demand.
  b. manipulating the availability of natural resources.
  c. manipulating the availability of capital goods.
  d. manipulating the availability of qualified workers.
  e. curbing the level of immigration.

Question 2

Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to sell bonds.
 a. True
  b. False
  Indicate whether the statement is true or false

[Dominic]

Answer to Question 1

a

Answer to Question 2

False