Refer to Figure 17-2. Suppose the economy is at point A. The Fed uses expansionary monetary policy to lower the unemployment rate permanently below the level associated with A. Which of the following will occur?
A) Inflation will accelerate in the long run.
B) Unemployment will accelerate in the long run.
C) Inflationary expectations will decline.
D) Unemployment will rise above the natural rate.
A
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Which of the following institutions has the responsibility for producing the coins that are distributed in the United States?
A) the U.S. Treasury Department B) the U.S. Mint C) the Office of the Comptroller of the Currency D) the Federal Reserve System
The average propensity to save (APS) is
A) the difference between the amounts of real disposable income consumed and saved. B) the percentage of additional real disposable income that will go toward real saving. C) the rate at which real savings changes over time. D) the percentage of real disposable income saved.