Monetary policymakers face a tradeoff between:
A. the level of output and the rate of inflation.
B. the volatility in output and the volatility in inflation.
C. high unemployment and low inflation.
D. low unemployment and high inflation.
Answer: B
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FICA is a payroll tax imposed on employers and workers that is used to fund Social Security and Medicare. Which of the following statements regarding the tax is true?
A) Most economists believe the burden of the tax falls almost entirely on workers. B) Congress wanted the burden of the tax to be greater for employers than for workers. C) Most economists believe the burden of the tax falls mostly on employers. D) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.
The process of allocating the total product among the resources involved is referred to as
a. geographic distribution. b. functional distribution. c. marketing distribution. d. frictional distribution.
Irving Fisher's view that velocity is fairly constant in the short run transforms the equation of exchange into the
A) Friedman's theory of income determination. B) quantity theory of money. C) Keynesian theory of income determination. D) monetary theory of income determination.
An autonomous expenditure is one that does not depend on:
A) government policy B) the automobile sector C) interest rates D) GDP