Price stability
A. Has been officially set by Congress at 3 percent or less.
B. Is targeted at a 3 percent rate of inflation by Alan Greenspan, the head of the Federal Reserve.
C. Has been achieved consistently in the 20th century in the United States.
D. Is defined as a 0 percent rate of inflation in the Full Employment and Balanced Growth Act of 1978.
Answer: A
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The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, which of the following statements is true?
A) Firms' surplus increases with the minimum wage. B) Workers who retain their jobs have their wages rise. C) The market is efficient. D) The quantity supplied of workers is less that quantity demanded. E) Unemployment decreases because firms employ their workers more carefully.
If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?
What will be an ideal response?