If the Fed's policies aim to increase aggregate demand, the Fed must fear
A) recession.
B) a supply shock that increases aggregate supply.
C) a supply shock that decreases potential GDP.
D) stagflation.
E) inflation.
A
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In the U.S. taxes:
a. are higher as a share of GDP than in France b. rely more on sales taxes than on income taxes c. have higher shares of social security contribution than in Europe d. none of the above
:Employed full-time:4,200Employed part-time: 700Not employed and looking for work: 300Not employed and not looking for work: 200Given the data in Table 12.1, if the workers who are "not employed and not looking for work" were counted as not employed and in the labor force, the unemployment rate of Metropolis would be approximately:
A. 4 percent. B. 7 percent. C. 9 percent. D. 10 percent.