When Paul Volcker became Federal Reserve chairman in 1979
A. the rate of inflation was relatively low, and he managed to raise it to 12 percent.
B. the rate of inflation was 12 percent, and he managed to reduce it, but doing so caused a recession.
C. the rate of inflation was 12 percent, and he was not able to bring it down during his time as chairman.
D. the rate of inflation was already low and stable, but his policies made it lower and more stable.
Answer: B
You might also like to view...
The demand for money is a relationship between: a. the price level and the amount of cyclical unemployment
b. the price level and the actual output produced in an economy. c. the interest rate and how much money people choose to hold. d. the interest rate and how much money people earn during a certain time period. e. the interest rate and the rate of inflation.
Assume the economy is experiencing a recessionary gap. Keynesian economists would support which of the following policies:
a. Nonstabilization b. Expansionary c. Nonintervention d. Fixed wage
D. All of these statements are true.
A. an output gap. B. a recession. C. a boom. D. an inflationary gap. AACSB: Reflective Thinking
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Figure 13.11Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. What is the value of the deadweight loss?
A. $0 B. $16,000 C. $32,000 D. Indeterminate from the given information.