Answer:
The Federal Reserve is in charge of the monetary policy in the United States. It expands or reduces the money supply (the total amount of money in the economy) by raising or lowering the interest rate.
There is a relationship, in the short run, between unemployment and money supply. The higher the money supply, the lower the unemployment rate, and viceversa: the lower the money supply, the higher the unemployment rate.
This relationship exists because when the money supply increases, the interest rate falls, if the interest rate falls, investing becomes cheaper, and as a result, firms invest more and hire more workers.
The opposite happens when the money supply is contracted: interest rates rise, investing becomes more expensive, and firms hire less people.
This is why the Fed has a great deal of power when it comes to employment in the economy.
The best answer is B) Scarcity
Scarcity refers to the fact that we do not have an unlimited amount of resources with which to obtain the things we want. In this case, students have various obligations and desires, such as working, relaxing, and doing homework, but a scarcity of time with which to do these things.
Answer:
menu costs of inflation
Explanation:
Menu costs of inflation refer to the costs of having to modify the prices as a result of the frequent change in the price levels of the products that force businesses to make constant updates on their sales prices. According to this, the answer is that this is an example of menu costs of inflation as the grocery store has to update the prices of the products frequently because of the high rate of inflation.
Answer:
a. Classical theory
b. Monetarist school.
Explanation:
Classical theory assumes that the fall in aggregate demand will create temporary affect on employment and ;later in the long run economy will adjust itself and will be at full employment automatically. Keynesian theory believes that demand is the factor which drives the economy. If the economy is at recession then efforts should be made to increase demand which will turn the economy growth upright.
