According to Paul Krugman, during the past decade Japan's macroeconomic policy should have incorporated which of the following?

Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will

A) increase. B) remain constant. C) decrease. D) not change in a way that can be predicted.

When a government partially defaults its debt, a "haircut" of 20% means that

A) creditors receive 20% of what they owed. B) creditors receive 80% of what they owed. C) creditors receive 40% of what they owed. D) creditors receive 10% of what they owed.