Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:

If the working age population ________ and the labor force does not change, the ________

A) increases; labor force participation rate will increase B) increases; labor force participation rate will decrease C) increases; unemployment rate will increase D) decreases; unemployment rate will increase E) decreases; labor force will increase

If the FDIC decides that a bank is too big to fail, it will use the ________ method, effectively ensuring that ________ depositors will suffer losses

A) payoff; large B) payoff; no C) purchase and assumption; large D) purchase and assumption; no