Match each example to either monetary policy or fiscal policy decisions: Government spending for highway projects Fiscal Policy Examples Monetary Policy Examples The central bank acts to increase interest rates The Federal Reserve Bank buys bonds to increase the supply of money in the economy. Government spending on agricultural price supports Changes in income tax rates for high income individuals The overall population in the small island nation of Sparta is 35,000. There are 20,000 individuals that are currently employed, while another 5.000 are actively seeking work but are unable to find a job they would take Use the formula in the textbook to calculate the unemployment rate in Sparta 14.3 percent 25 percent 20 percent 71.4 percent Match the general types of unemployment: 1. Frictional 2. Cyclical 3. Structural 1 This type of unemployment occurs because it takes time for workers to search for jobs that best suit their tastes and skills 3 This type of unemployment occurs because of economic contractions and recessions This type of unemployment occurs because changes in the economy result in fewer employers offering a particular type of job compared to the number of workers looking for that type of job