In Late 2007 and Early 2008,the U

question 13

Multiple Choice

In late 2007 and early 2008,the U.S.Federal Reserve pursued expansionary monetary policy.Which of the following will occur as a result of this monetary policy action?

• A)The LM curve shifts down.
• B)The LM curve shifts up.
• C)The IS curve shifts rightward as the interest rate falls.
• D)The IS curve shifts leftward as the interest rate increases.
• E) none of the above

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Definitions:

Labor Force

The total number of people, including both the employed and unemployed, who are actively seeking employment.

Adult Population

The segment of the population that is considered adult, typically based on a specific age range, often used in demographics and employment statistics.

Labor-Force Participation Rate

The percentage of the population that is either employed or actively looking for employment.

Labor Underutilization

A situation where available labor resources are not being used efficiently, leading to unemployment or underemployment.