According to the text, the Fed and other policy makers are concerned about:

A. inflation rates that are too high only.
B. inflation rates that are either too high or too low compared to its set target.
C. inflations rates that are too low only.
D. annual inflations rates that exceed 10%.


Answer: B

Economics

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Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. What is the industry supply curve?

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Which of the following institutions may result in hold-up?

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During the recession phase of the business cycle, production, employment, and income ___________

Fill in the blank(s) with the appropriate word(s).

Economics