In the long run, the Federal Reserve can control which of the following?
A) the unemployment rate B) the growth rate of real GDP in the economy
C) the inflation rate D) the natural rate of unemployment
C
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According to the economic way of thinking,
A) the private sector is more important than the public sector. B) the public sector is more important than the private sector. C) the public sector cannot be adequately studied using economic theory. D) people in society strive to advance the projects they are interested in, and they will advance their interests through market institutions or the institutions of government.
Sarah gets a salary increase of 20 percent. Before her raise, she purchased 5 pounds of hamburger and 1 pound of beef stew a month. After her raise, she consumes 2 pounds of hamburger and 3 pounds of beef stew a month. If everything else is held constant, we know that
A) hamburger is an inferior good and beef stew is a normal good for Sarah. B) hamburger is a normal good and beef stew is an inferior good for Sarah. C) both hamburger and beef stew are normal goods for Sarah. D) both hamburger and beef stew are inferior goods for Sarah.
Answer the following statement(s) true (T) or false (F)
1. Social Security involves cash transfer payments. 2. The United States spends a higher portion of GDP on healthcare than any other industrialized nation. 3. The demand for healthcare has deceased over the past several decades. 4. The demand for healthcare is fairly inelastic. 5. Third-party payments act as an incentive for patients and physicians to minimize heath care costs.
If the government sets a price floor above what would be the competitive market price of a product, a shortage of the product will develop.
Answer the following statement true (T) or false (F)