1. which of the following increases when the fed makes open-market sales?
a. neither currency nor reserves
b. currency but not reserves
c. currency and reserves
d. reserves but not currency
2. in the long run, policy that changes aggregate demand changes
a. neither unemployment nor the price level
b. only unemployment
c. only the price level
d. both unemployment and the price level

C andD

Explanation:

When the Fed makes open-market sales there will be increase in currency and reserves

Answer to question 2

D. both unemployment and the price level.

c is the correct answer.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know