Why doesn't the Fed eliminate inflation from the economy entirely?
a. It is incapable of doing so.
b. It believes that inflation is bad for the economy.
c. It believes that the measured inflation rate understates the true rate of inflation.
d. It recognizes that continuing inflation helps labor markets adjust more easily.
e. If it did so, no one would get a raise in salary.
D
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According to Nobel laureate Douglass North, one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government
Indicate whether the statement is true or false
The payment of unemployment compensation tends to induce business firms to
A) lay off workers as opposed to lowering sales. B) search for new workers for shorter periods of time. C) lay off workers as opposed to increasing inventories and/or reducing hours worked for all employees. D) recall previously laid off workers more rapidly.