Why doesn't the Fed eliminate inflation from the economy entirely?
a. It is incapable of doing so.
b. It believes that inflation is bad for the economy.
c. It believes that the measured inflation rate understates the true rate of inflation.
d. It recognizes that continuing inflation helps labor markets adjust more easily.
e. If it did so, no one would get a raise in salary.
D
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In the above table, the marginal product of the third worker is
A) 1. B) 2. C) 3. D) 4.
COLA stands for:
A. cost-of-living adjustment. B. cost-of-living aggregate. C. capital operations leasing adjustment. D. capital operations leasing agreement.
Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:
a. seasonally unemployed. b. cyclically unemployed. c. frictionally unemployed. d. structurally unemployed.
The Temporary Aid to Needy Families (TANF) program:
A. requires that recipients participate in work activities. B. is associated with a decrease in single mothers working. C. has caused a rise in national welfare caseloads. D. was an important factor in the increase in poverty among children between 1993 and 2002.