When the economy was at full employment in the late 1990s, the price level was continually rising. This meant
a. the Fed was pursuing a passive monetary policy.
b. the Fed was pursuing an active monetary policy.
c. hawk and dove policies canceled each other out.
d. the economy's self-correcting mechanism was not operating.
e. none of the above.
D
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What is consumer equilibrium? How is it achieved?
Please provide the best answer for the statement.
Consider a market that is in equilibrium. If it experiences both an increase in demand and an increase in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise. B. quantity will definitely rise, while the equilibrium price cannot be predicted. C. price will definitely rise, while the equilibrium quantity cannot be predicted. D. price and quantity will both fall.