When the U.S. government purchases capital equipment, such as a computer, these expenditures are part of investment in GDP

The two fundamental causes of unemployment at full employment are

A) demographic change and decreases in the demand for labor. B) job search and job rationing. C) seasonal jobs and technological change. D) foreign competition and financial bankruptcies. E) decreases in labor productivity and more generous retirement benefits.

An example of expansionary fiscal policy would be

A) a decrease in government spending to reduce budget deficits. B) an increase in tax collection to reduce budget deficits. C) a decrease in interest rates to help stimulate the economy. D) an increase in government spending on infrastructure to create jobs and improve the economy.