Because the natural rate of unemployment is not known precisely, policymakers who use it as a guide for policy must be
A) less aggressive with policy changes than they would be if they knew the value of the natural rate.
B) more aggressive with policy changes than they would be if they knew the value of the natural rate.
C) ready to change policy more quickly.
D) aware of other data.
A
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A general policy of imposing trade restrictions is called
a. protectionism b. import substitution c. quantitative restrictions d. effective protection e. all of the above
Financial markets
A) channel funds indirectly between borrowers and lenders. B) channel funds directly from lenders to borrowers. C) act as go-betweens by holding a portfolio of assets and issuing claims based on that portfolio to savers. D) generally provide lenders with lower returns than do financial intermediaries.
If we focus on the banking system and assume no change in the public's currency holdings, a loss of reserves by any one bank must:
A. result in a multiple loss to the banking system. B. equal the loss of reserves by the entire system. C. be equal to the net loss of reserves for the banking system. D. result in no change in reserves for the banking system.
One of the keys to reducing poverty is
A. Government control of resources. B. Increased economic growth. C. The redistribution of existing incomes. D. Increased population growth.