When the economy is operating at an unemployment rate below the full employment rate,
a. actual output is above potential output
b. actual output equals potential output
c. actual output is below potential output
d. frictional unemployment has been eliminated
e. structural unemployment has been eliminated
A
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An unintended consequence of rent control has been
a. apartment owners failing to properly maintain their buildings b. a surplus of housing causing rents to fall below maintenance cost c. that rents have been consistently held above the equilibrium price d. a shortage of tenants e. a decrease in the homeless population
If the Federal Reserve targets the interest rate and the money demand curve shifts to the left, then the Fed
A) cannot maintain the interest rate target. B) can maintain the interest rate target, but at a lower quantity of the money supply. C) can maintain the interest rate target, but at a higher quantity of the money supply. D) can maintain the interest rate target with no change in the money supply.