Structural unemployment results in a ________ of labor which should theoretically be reduced by a(n) ________ in the wage rate.
A) surplus; decrease
B) surplus; increase
C) shortage; decrease
D) shortage; increase
Question 2
The change illustrated in the figure above can be the result of the Fed ________ government securities in the open market and will ultimately lead to ________ in aggregate demand.
A) selling; an increase
B) selling; no change
C) buying; no change
D) buying; an increase
E) selling; a decrease