A government report that makes working in a particular industry more attractive to workers will most likely ________ the number of workers hired in that industry, and ________ the wage paid to those workers.

Refer to Figure 28-2. 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) Inflationary expectations will decline. B) Unemployment will rise above the natural rate. C) Unemployment will accelerate in the long run. D) Inflation will accelerate in the long run.

If the Fed were required to maintain an absolutely constant growth rate of high-powered money, then the growth rate of the money supply

A) would be zero. B) would be constant at the growth rate of H. C) would be constant but not necessarily at the growth rate of H. D) would fluctuate along with the parameters in the money-creation formula.