The equilibrium price of labor is called:

In a liquidity trap situation: a. The Fed could not appreciably lower short term interest rates

b. If the Fed added reserves to the banking system, it would have little effect on investment. c. Traditional monetary policy would be relatively weak in its effects on aggregate demand. d. All of the above are true.

Jake retired from the police force. He started working an hour or two a day at a paid job in city's courthouse. Jake is

A. not in the labor force. B. in the labor force. C. employed. D. unemployed.