Suppose an increase in interest rates causes rising unemployment and falling output. To counter this, the Federal Reserve would

The social cost of cutting trees for firewood in a government forest is

A) the increased likelihood of flooding as more trees are cut. B) opportunity cost to the individual of cutting the wood. C) the increased likelihood of flooding as more trees are cut plus the private cost of cutting the trees. D) the marginal costs of cutting the last tree.

________: when aggregate demand for goods and services is rising and the economy is approach full employment output

Fill in the blank(s) with correct word