Refer to Figure 11.4. Which diagram illustrates the effect of an increase in government spending?

Which of the following individuals is a supplier of loanable funds in the economy?

a. Sam, a software developer, who uses his saving to buy a share of his company every three months b. Joe, a cab driver, who keeps his income as cash inside a locker in his house c. Lina, a hair stylist, who spends her income to buy new cosmetics for her parlor d. Moe, a farmer, who spends his income to buy food for homeless people

A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in

a. frictional unemployment. b. structural unemployment. c. cyclical unemployment. d. a higher labor force participation rate.