If the government wanted to offset the effect of a fall in consumer confidence on AD, it might:
a. decrease government purchases.
b. decrease taxes

The main reason economists are concerned about the problem of idle or unemployed resources is that: a. high rates of crime are related to high rates of unemployment

b. high rates of inflation are caused by idle land, labor, and capital resources. c. government benefits paid to unemployed workers put stress on the federal budget. d. unemployed resources mean less production and a lower standard of living for the nation.

The Fed's loan that effectively nationalized AIG was approved by Congress

a. True b. False Indicate whether the statement is true or false