What action should the Fed take if it wants to move from a point on the short-run Phillips curve representing low unemployment and high inflation to a point representing higher unemployment and lower inflation?
What will be an ideal response?
The Fed would undertake a contractionary monetary policy. This would decrease aggregate demand, causing real GDP and the price level to both decrease. A decrease in real GDP will decrease employment, raising the unemployment rate.
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Define a variable and give two examples that would apply to economics
What will be an ideal response?
All of the following are associated with the War Industries Board except
a. the negotiation of the prices of key industrial products. b. developing and implementing the bulk line pricing system to determine industrial prices that maximized output. c. the unintended consequence of the "priorities inflation" of contracts. d. establishing and enforcing minimum wages for manufacturing workers.