Questions (2 points each) 1. Frictional unemployment is not only inevitable but also partly desirable so that People can voluntarily move to better paying jobs. 2. Unemployment imposes equal burdens on different groups in the economy. 3. Consumption expenditure @ and saving are both directly related to the level Disposable income (DI). 4. The break-even level of income is the level of income at which business firm begins To make profit. 5. In the case of money supply, the value of M2 always exceeds the value of M1. 6. In the U. S. monetary policy, like fiscal policy, is subject to pollical pressure. 7. An easy monetary policy is a monetary policy tool designed to control inflation. 8. Aircrafts and chemical products are among the principal exports of the U. S. Ill. Fill - in the Blank Questions (2 points each) 1. The U. S. central bank which is known as the Federal Reserve Banks (the Fad) was created by a Federal Act in (1913, 1914, 1915). and it is run by a ( 3, 7, 12 ) man Board of Governors appointed by the president of the United States and confirmed by the Senate for a year term . 2. If there is a serious problem of inflation in the economy, the traditional view would be that the Fed should pursue ( an easy, a tight) monetary policy in which case the Fed would ( buy, sell) government securities as a way of ( increasing, decreasing). money supply. 3. The transactions demand for (directly, indirectly)_ With (interest, level of income). 4. Trade deficit occurs when a country's (exports, imports)_ Exceeds its 5. Name the two major accounts of the Balance of Payment (B.O.P)