When the Fed engages in an open market sale, the money supply ________ and the nominal interest rate ________.

A time-series graph

A) shows how a variable changes over time. B) uses bars rather than lines. C) shows points in a scatter diagram. D) is similar to a cross-section graph because both can show trends over time. E) is in the shape of a pie.

By 2010, the U.S. economy had emerged from the recession that had begun in 2007. Despite an economic growth rate well above zero, unemployment showed little sign of declining much below ten percent

Focusing on the definition of the unemployment rate, explain how it is possible to have positive economic growth without declining unemployment.