What does the Fed do when the initial equilibrium rate is below the target rate?
a. Decrease the price level.
b. Increase the price level.
c. Decrease the money supply.
d. Increase the money supply.
c. Decrease the money supply.
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One of the reasons why the Phillips curve is no longer viewed as a "menu" of possible choices available to policy makers is that
a. in the 1970s and 1980s there was no inflation at all. b. analysis indicates there was no such "menu" in the 1960s. c. in the 1970s and 1980s much inflation came from the supply side. d. economic theory is unable to explain the curve and, therefore, it has been rejected.
Given the availability of the Medicaid program, why are so many poor people uninsured?
A. Because only a fixed percentage of the population can participate in Medicaid at any time. B. Because many poor people earn enough that they do not qualify for Medicaid. C. Because nonincome requirements screen many poor people from the program. D. Because only native-born Americans are eligible for the program.