12. The drop in aggregate demand during the Great Depression was made more severe by the:

The declines in tax rates and interest rates

Fed's use of Quantitative Easing

Keynesian output adjustment process

Classical price adjustment mechanism

13. The financial sector plays a major role in the macroeconomy because it helps to:

redistribute income from the rich to the poor

reduce the liquidity of assets for consumers and investors

protect the U.S. economy from foreign competition

convert savings into investment

14. Improvements in labor productivity in the long run are associated with increases in:

Output

Prices

Interest rates

Unemployment