If the Fed were to push unemployment below NAIRU, it is likely that:
A. the economy would be operating efficiently.
B. deflation will send the economy into a deflationary spiral.
C. inflation will increase.
D. the dual mandate will be met.
Answer: C
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The precise terms of each futures contract are
A) negotiated by the long and the short. B) set by the short position. C) set by the long position. D) established by the exchange on which the trade takes place.
An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____
a. pay a lower wage rate to labor b. increase truck production c. hire more workers d. increase capital used in production e. increase land used in production
A feature of a healthy macroeconomy is high inflation
a. True b. False Indicate whether the statement is true or false
Potential Pitfalls When Using Scientific Thinking
What will be an ideal response?