Increasing the efficiency of various employment

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11. Increasing the efficiency of various employment agencies to find better matches for those looking for jobs will: A) reduce the natural rate of unemployment. B) reduce structural unemployment. C) reduce cyclical unemployment. D) not affect frictional unemployment. 12. If planned investment does not fall when the interest rate rises, there will be: 13. A company produced 8 dishwasher machines in 2005. The company sold 6 in 2005 and added 2 to its inventories. The market value of the dishwasher machines in 2005 was $200 per unit. What is the value of this company’s output that will be included in the 2005 GDP?
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14. Suppose the economy is currently at point A. If the Fed used contractionary monetary policy, which statement is incorrect? 15. If the Federal Reserve attempts to continue reducing unemployment by manipulating monetary policy, which of the following would you expect to see? A) The rate of inflation will fall as the Fed tries to reduce the unemployment rate. B) The Fed will reduce the natural rate of unemployment. C) The Fed will follow deflationary monetary policies. D) The Fed will follow inflationary monetary policies.
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NAME: RI’s NAME: Part II: True/False 1. Firms react to unplanned inventory investment by increasing output. 2. An increase in the MPS, reduces the government spending multiplier. 3. A tax cut of $10 billion will have less effect on the economy than an increase in government purchases of $10 billion. 4. During recessions, automatic stabilizers work to reduce government expenditures and increase government revenues. 5. When you take $100 from your saving account and deposit it in your checking account, M2 decreases. 6. If all banks are loaned up, a $1,000 deposit creates $1,000 in new money. 7. An excess demand for money drives interest rates down. 8. If money supply rises, then the interest rate will fall.
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