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Country A: Real GDP is decreasing and unemployment is increasing. Leaders should
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
What is the business cycle?
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
Which statement best describes the current unemployment rate?
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
If economic activity in the country is decreasing, which action would you recommend?
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
The Fed just announced that they are adopting an easy-money, what is the most likely result of that policy?
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
The Federal Reserve system is...
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
What is the inflation?
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
Why is high inflation a problem?
The government should increase the amount of money it spends
loans become cheaper
It is high but it has been going down recently
the cyclical periods of increased and decreased economic activity
cut taxes and increase the money supply
the central bank of the U.S. that controls monetary policy
an increase in the average price level
a person's purchasing power decreases
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