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Author Question: An economic recession produces A) a decrease in cyclical unemployment. B) an increase in ... (Read 88 times)

yoroshambo

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on: Jun 29, 2018
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.


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atrochim

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

D


yoroshambo

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Reply #2 on: Jun 29, 2018
Thank you :)


atrochim

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Reply #3 on: Jun 29, 2018
Happy to help you


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