Why is unemployment a problem?
What will be an ideal response?
Unemployment is a problem for both the nation and for the unemployed worker. For the nation, unemployment represents lost production and lost incomes. The lost income is also a major problem for the unemployed worker. In the long run, the worker also suffers a loss of human capital which can permanently damage the worker's future job prospects.
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Money serves all of the following functions except:
A) medium of exchange. B) store of value. C) unit of account. D) measure of power.
If a central bank wants to counter the change in the price level caused by an adverse supply shock, it could change the money supply to shift
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.