Negative supply shocks confront the Fed with a dilemma because
a. full employment is no longer possible
b. the costs of fulfilling one objective are paid in terms of failure to meet the other
c. inflation cannot be prevented considering the reduced supply
d. all policy choices are equally undesirable
e. such shocks are entirely unpredictable
B
Economics
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The long-run impact of unanticipated expansionary policy is ______.
a. underproduction b. overproduction c. deflation d. inflation
Economics
You may incorrectly conclude that an idea no other person has implemented is highly profitable because:
A. you misjudged people's wants and constraints. B. you miscalculated the trade-offs people face. C. you misunderstood how people would respond to incentives. D. All of these.
Economics