Refer to Figure 28-2. Suppose the economy is at point A. The Fed uses expansionary monetary policy to lower the unemployment rate permanently below the level associated with A. Which of the following will occur?
A) Inflationary expectations will decline.
B) Unemployment will rise above the natural rate.
C) Unemployment will accelerate in the long run.
D) Inflation will accelerate in the long run.
D
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Which of the following questions have a macroeconomic focus?
A) How does a consumer choose which goods to consume given his/her income? B) How does demand for a good change when there is an increase in a consumer's income? C) How does a monopolist decide how much to produce? D) What is the unemployment rate in your country?
Refer to the table above. If the word price of trousers is $18 per pair, then which of the following statements is true?
A) All the four countries will export trousers. B) All the four countries will import trousers. C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers. D) Country A and Country D will import trousers, whereas Country B and Country C will export trousers.
Higher rates of interest increase the opportunity cost of holding money balances
a. True b. False Indicate whether the statement is true or false
Which is assumed to be most limited in scope under a market system?
A. Freedom of choice. B. Government. C. Competition. D. Freedom of enterprise.