Author Question: When actual output increases the potential output, _____. a. more resources become unemployed. b. ... (Read 94 times)

karen · **on:** Jun 30, 2018

When actual output increases the potential output, _____.
a. more resources become unemployed.
b. prices remain constant.
c. prices tend to increase.
d. nominal GDP decreases.
e. resource prices decrease.

Question 2

When the Fed purchases U.S. government securities through the open market, the money supply:
a. increases, the interest rate falls, and the quantity of money demanded increases.
b. falls, the interest rate falls, and the quantity of money demanded increases.
c. increases, the interest rate increases, and the quantity of money demanded increases.
d. falls, the interest rate increases, and the quantity of money demanded falls.
e. falls, the interest rate falls, and the quantity of money demanded falls.