Your text suggests the Fed
A) is a slave to Congress.
B) is totally free from political pressure.
C) probably cannot pursue monetary policies that completely contradict the federal government's fiscal policies.
D) is a hoax and a shame that ought to be abolished.
C
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Use the following diagram to answer the next question.
The move from point 1 to point 2 in the diagram represents ________.
A. a decrease in both the unemployment rate and the inflation rate B. a decrease in the unemployment rate and an increase in the inflation rate C. an increase in the unemployment rate and a decrease in the inflation rate D. an increase in both the unemployment rate and the inflation rate
According to economists who explain the Phillips curve, a decline in the unemployment rate causes higher rates of inflation because
a. workers are concerned about protecting their jobs and so they accept smaller wage increases b. during periods of GDP growth, firms find it easier to pay higher wage rates and charge higher prices without worrying about losing markets c. firms decrease production and compete less aggressively for workers during periods of inflation d. workers feel less secure about their jobs and demand higher pay raises e. the Laffer curve comes into effect
About ________ of research on new medicines is carried out in the United States
A) 10 percent B) one-half C) two-thirds D) 90 percent
Which of the following would be a consequence of substitution bias in the CPI?
A) Social Security payments would not adequately compensate retired workers for inflation. B) Businesses would overcompensate employees for inflation when giving cost of living raises. C) The inflation rate based on the CPI would underestimate the true level of inflation. D) Judges would award child support payments that would not adequately keep up with the true cost of inflation.