What is frictional unemployment?
What will be an ideal response?
Frictional unemployment is unemployment that occurs naturally during the normal workings of the economy, such as workers taking time to to search for suitable jobs and companies taking time to search for qualified employees.
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Human wants
a. are unfilled only in the poorer countries of the world b. can be completely satisfied by adopting new production technologies c. can never be fully satisfied d. can be satisfied if they refer only to necessities e. exist only if we are selfish, irrational, or unwilling to modify how we produce goods and services
If the Fed wanted to shift to a restrictive monetary policy and reduce the money supply, it could
a. decrease the reserve requirements imposed on commercial banks. b. purchase U.S. government securities and other financial assets in the open market. c. decrease the interest rate on loans extended to banks and other financial institutions. d. increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.