If the Fed were to allow unemployment to remain at a higher level than NAIRU:
A. the dual mandate would be violated.
B. It would lead to deflation.
C. they would fail to maintain full employment.
D. All of these statements are true.
Answer: D
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The total value of U.S. Treasury bonds outstanding equals
A) the federal government deficit. B) the cyclically adjusted budget deficit. C) the federal government surplus. D) the federal government debt.
Who asserted that "the Federal Reserve's job is to take away the punch bowl just as the party gets going?"
a. president George W. Bush b. president John F. Kennedy c. economist John Maynard Keynes d. former chairman of the Federal Reserve System William McChesney Martin
If a single union supplies all the labor in a competitive labor market, the union probably will:
A. increase union membership to increase wages. B. increase labor supply to raise employment. C. behave as a monopsonist. D. restrict labor supply to raise wages.
Figure 8-2
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In Figure 8-2, which of the following moves can be explained by a decrease in disposable income?
A. E to B B. A to C C. A to D D. B to E