To what extent can Congress address unemployment and inflation? If Congress cannot address these issues, who does? Explain
What will be an ideal response?
Answer: An ideal response will:
1. Discuss the two philosophies for addressing these problems: monetary policy and fiscal policy. Note that Congress implements fiscal policy, while the Federal Reserve Board implements monetary policy.
2. Explain how Congress can cut taxes or increase spending to address unemployment.
3. Note that Congress cannot do much to affect inflation, which is usually addressed through monetary policies that constrict the money supply.
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What U.S. Secretary of State was instrumental in getting Congress to pass the Reciprocal Trade Agreements Act?
a. Henry Kissinger b. Hillary Clinton c. Cordell Hull d. Dean Acheson