If you were a rational expectations economist, you would argue that the goal for economic policy is to
a. discover the NAIRU and make sure the actual rate of unemployment doesn't fallbelow it
b. discover a way to lower unemployment to two percent without inflation
c. keep the inflation rate below 10 percent
d. maintain inflation at 3 percent and unemployment at 4 percent
e. maintain unemployment at 3 percent and inflation at 4 percent
A
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The federal government's abilities to tax during war- and peace-times are constrained by
(a) the need to be re-elected by the voting population. (b) the interests of the non-voting population. (c) the U.S. Constitution. (d) the protected rights of state and local governments to tax.
The law of supply indicates that, other things equal:
A. producers will offer more of a product at high prices than at low prices. B. the product supply curve is downsloping. C. consumers will purchase less of a good at high prices than at low prices. D. producers will offer more of a product at low prices than at high prices.