One thing that is true about economic policy in the U.S. is:
A. fiscal and monetary policy never conflict.
B. fiscal policy ultimately controls monetary policy since Congress can control the Fed's budget.
C. monetary and fiscal policy need not, but may conflict.
D. monetary policy ultimately controls fiscal policy since the Fed controls the money supply.
Answer: C
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In the figure below, draw a short-run Phillips curve and a long-run Phillips curve if the expected inflation rate is 4 percent and the natural unemployment rate is 6 percent
Explain how the two change in the short run if: a. slower growth in aggregate demand causes a recession. b. the inflation rate increases. c. the natural unemployment rate increases.
Which of the following is a microeconomic concern?
A) the rate of economic growth in the United States B) the current unemployment rate in the United States C) consumer behavior D) national output of the United States
Any market that we are studying and the markets for the related inputs must all be in equilibrium at the same time. This leads to:
A. simultaneous equilibrium effects. B. partial equilibrium effects. C. general equilibrium effects. D. equilibrium-induced changes.
In economics, choosing one activity means:
A. choosing not to take advantage of another opportunity. B. people always act rationally. C. people signal they only like that activity. D. that activity must be observable to be studied.