In the U.S. the number of households is:

If the Fed conducts a contractionary monetary policy, ________

A) the nominal interest rate will decrease B) demand for labor will increase C) banks will make fewer loans D) bank deposits will increase

Okun's Law states that

A) there is a relationship between the unemployment rate, real GDP, and potential GDP. B) supply creates its own demand. C) as the unemployment rate rises, the inflation rate falls. D) a higher inflation rate leads to a higher nominal interest rate. E) as the real wage rate falls, the quantity of labor demanded increases.