In the early 1980's the Fed tightened monetary policy. Over the next few years
a. inflation remained high and unemployment rose.
b. inflation fell but unemployment rose temporarily.
c. inflation and unemployment fell.
d. inflation and unemployment rose.
b
You might also like to view...
We can find the market demand for pears by:
A. adding all the prices people are willing to pay for pears. B. multiplying the number of people times the price of pears. C. adding the number of pears that producers are willing to sell. D. adding the individual demand curves for pears.
As a result of increased tensions in the Middle East, oil production is down by 1.21 million barrels per day—a 5 percent reduction in the world’s supply of crude oil. Explain the likely impact of this event on the market for gasoline and the market for small cars.
What will be an ideal response?
In a market system, as one industry expands while another contracts, resources will flow:
A. Away from the expanding industry towards the contracting one B. From one industry due to the changes in resource prices paid by firms C. Towards the industry where the product demand is declining D. Because resource allocation will have to equalize between the two industries
Rational ignorance is
A) a result of our educational system. B) the curtain, or wall, of knowledge between the persons that are educated and those that are not. C) the curtain behind which people choose to hide to avoid knowledge about poverty and, in general, the unequal distribution of income. D) the curtain separating educated voters from uneducated voters. E) none of the above