The Fed has the power to increase or decrease the number of dollars in the economy through the decisions of

The positive effect of having more potential volunteers resulting in a greater likelihood of a beneficial outcome is known as the diffusion effect

Indicate whether the statement is true or false

When the economy is operating at an output rate below its full-employment level, the

a. actual level of unemployment will exceed the natural rate of unemployment. b. current rate of output will tend to persist into the future. c. strong demand for resources will cause resource prices to rise. d. actual unemployment rate will be less than the natural rate of unemployment.