If the government wishes to increase the level of real GDP, it might reduce:

A. the size of the budget deficit.
B. its purchases of goods and services.
C. transfer payments.
D. taxes.

Answer: D

Economics

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The advice to "retrain" would be most appropriate for which of the following types of unemployment?

A) structural unemployment B) core unemployment C) frictional unemployment D) cyclical unemployment

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If Treasury deposits at the Fed are predicted to fall, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves

A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain

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