and selling of already-existing government securities). Explain how the Fed or the Central Bank increases the money supply and decreases the money supply by using the three tools that have been described. 6. Explain several reasons for a downward-sloping aggregate demand. Then drawn and explain the effect on increase in money supply and government purchase on aggregate demand curve 7. To remember you that the unemployment rate is the ratio of the number of unemployed people to the number of people in the labor force. To be considered unemployed and in the labor force, a person must be looking for work. Suppose the number of employed people in Kubang is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725. Based on the above data, find an explain: a. What is the size of the labor force? b. How many people are unemployed? C. What is the size of the working-age population? 8. For each of the following statements, decide whether you agree or disagree and explain your answer: a. During periods of budget surplus (when G