If the Fed Decreases the Money Supply

question 184

Multiple Choice

If the Fed decreases the money supply,

• A) aggregate demand and aggregate supply both increase.
• B) aggregate demand increases, which leads to movement along the short-run aggregate supply curve.
• C) aggregate demand decreases, which leads to movement along the short-run aggregate supply curve.
• D) aggregate supply increases, which leads to movement along the aggregate demand curve.
• E) aggregate supply decreases, which leads to movement along the aggregate demand curve.

Recognize events within a probability context and classify them as simple, compound, independent, or dependent.

Distinguish between mutually exclusive and collectively exhaustive events.

Compute probabilities applying appropriate probability rules.

Understand the concept of conditional probability and its calculation.

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Definitions:

Employed Category

A classification used in labor statistics to describe individuals who are currently working for pay or profit, including full and part-time workers.

Underemployed

Referring to individuals working in jobs that do not utilize their skills and educational background or working fewer hours than desired.

Unemployed Category

A classification for individuals who are capable of working and are actively seeking employment but are not currently employed.

Not in the Labor Force

Individuals who are neither employed nor actively looking for work, excluding them from the labor force statistics.