If the Federal Reserve attempts to continue reducing unemployment by manipulating monetary policy, which of the following would you expect to see?
A) The rate of inflation will fall as the Fed tries to reduce the unemployment rate.
B) The Fed's policies will be deflationary.
C) The Fed's policies will be inflationary.
D) The Fed will reduce the natural rate of unemployment.
C
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In the early 1900s, Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line. What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?
A) It shifted down. B) It became flatter. C) It shifted up. D) It became linear.
If the Fed is concerned about inflation, it should:
A. buy bonds or raise the discount rate. B. buy bonds or reduce the discount rate. C. sell bonds or raise the discount rate. D. sell bonds or reduce the discount rate.
Stagflation is the simultaneous occurrence of inflation and high unemployment.
Answer the following statement true (T) or false (F)
What is means testing?
What will be an ideal response?