The population is 1,000 million, the labor force is 750 million, and the number of unemployed is 30 million. What is the unemployment rate?

If an economy is operating at a point inside the production possibilities frontier, then

a. some of the nation's resources are unemployed b. the production decisions are made by the government c. unlimited resources must satisfy scarce desires d. there is a scarcity of human resources relative to human wants therefore society must have some mechanism for making choices e. society is paying too much for wages

When the Federal Reserve wishes to, in the long run, decrease inflation, it

A. will increase the money supply by selling bonds. B. will decrease the money supply by selling bonds. C. will increase the money supply by buying bonds. D. has no policy options that will accomplish this.