Suppose the measured unemployment rate is 7.5% and the true natural rate of unemployment is 5.1%. If the chair of the Fed believes the natural rate of unemployment to be 6.7%, then the chair will
A) stimulate the economy when it should be slowed.
B) slow the economy when it should be stimulated.
C) stimulate the economy, exactly as called for.
D) slow the economy, exactly as called for.
C
Economics
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Which statement is true?
A. Most economists support rent control laws. B. Usury laws and rent control are price ceilings. C. Usury laws have never had any effect because they are set well above interest rates. D. None of these choices are true.
Economics
Use the following graph, which shows the market for euros, to answer the next question. Q*=1 Euro.
Assume the U.S. and European governments adopt a system of flexible exchange rates. One U.S. dollar will purchase how many euros?
A. 1.11 euros B. 0.90 euro C. 1.90 euros D. 1.00 euro
Economics