Author Question: Assume an economy experiences, for a given period, a 5 increase in output and a 1 increase in ... (Read 59 times)

jho37 · **on:** Jun 30, 2018

Assume an economy experiences, for a given period, a 5 increase in output and a 1 increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?

A) The unemployment rate increased during this period.
B) The unemployment rate decreased during this period.
C) The unemployment rate did not change during this period.
D) The effects on the unemployment rate are ambiguous.
E) none of the above

Question 2

Which of the following generally occurs when a central bank pursues expansionary monetary policy?

A) the central bank purchases bonds and the interest rate increases.
B) the central bank purchases bonds and the interest rate decreases.
C) the central bank sells bonds and the interest rate increases.
D) the central bank sells bonds and the interest rate decreases.