If the Fed increases the quantity of money and lowers the federal funds rate, real GDP ________ and the price level ________

A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) increases; does not change

A

Economics

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NPR ("Certain Green Industries Have Job Openings", November 12, 2008 ) reported on a story about wind turbine manufacturers in Ohio having trouble finding skilled workers

The report noted that as a result tens of thousands of people having been laid off, there is "a huge pool of job-seekers." The firms claim to "offer good pay and benefits." A representative from the United Steelworkers claims that their union members have easily transferrable skills, but the pay is too low, around $30,000 annually. A manager at Apollo Alliance says that workers in the new industry need different skills than those in the old steel industry. The type of unemployment described in the story is ________ unemployment. A) cyclical B) structural C) frictional D) efficiency wage

Economics

How does a decrease in government spending affect the aggregate expenditure line?

A) It increases the slope of the aggregate expenditure line. B) It shifts the aggregate expenditure line downward. C) It decreases the slope of the aggregate expenditure line. D) It shifts the aggregate expenditure line upward.

Economics