When the overall price level in an economy increases, the interest rate in that economy tends to increase as well. This increase in the interest rate makes investing in domestic assets look more attractive than investing in assets in other countries, so the demand for foreign assets decreases. This is called the _____

A newspaper headline reads "A New Wave of Workers Enters the Job Market!" This wave of young, new entrants to the labor market is likely to lead to

A) no effect on the unemployment rate. B) an increase in the natural unemployment rate. C) a decrease in the natural unemployment rate but an increase in the actual unemployment rate. D) a decrease in the unemployment rate. E) a decrease in the country's potential GDP.

Of the $840 billion American Recovery and Reinvestment Act stimulus package which was enacted in 2009, approximately one-third took the form of ________ and two-thirds took the form of increases in ________

A) treasury bond purchases; the money supply B) tax rebates; tax cuts C) tax cuts; government expenditures D) discretionary government spending; transfer payments