What can the Federal Reserve do to reduce the natural rate of unemployment?
A) nothing
B) follow expansionary monetary policy that will reduce inflation
C) follow expansionary monetary policy that will increase inflation
D) follow contractionary monetary policy that will increase inflation
A
You might also like to view...
The table below shows data for India's economy. Real GDP is measured in millions of rupees
Price level Real GDP supplied in the short run Real GDP demanded a 114 23,501 35,898 b 120 25,355 32,341 c 125 27,670 27,670 d 131 30,366 18,569 e 138 33,164 15,898 If potential GDP in India is ________ million rupees, India is experiencing ________. A) 26,500; an inflationary gap B) 28,500; an above-full-employment gap C) 26,500; a recessionary gap D) 30,000; a potential GDP gap
Appendix: A Dutch auction implies all of the following except
a. more than one unit sale available b. higher prices later in the auction c. identical expected seller revenue for common value items d. greater expected seller revenue in estate sales with risk-averse bidders