Suppose the measured unemployment rate is 7.5 and the true ...

[EY67]

Suppose the measured unemployment rate is 7.5 and the true natural rate of unemployment is 5.1. If the chair of the Fed believes the natural rate of unemployment to be 6.7, then the chair will
 
  A) stimulate the economy when it should be slowed.
  B) slow the economy when it should be stimulated.
  C) stimulate the economy, exactly as called for.
  D) slow the economy, exactly as called for.

Question 2

The amount by which the federal government's annual expenditures exceed its annual receipts is the
 
  A) federal debt.
  B) federal government budget deficit.
  C) federal government budget surplus.
  D) federal profit.

[bbburns21]

Answer to Question 1

C

Answer to Question 2

B

[EY67]

Correct answers!

[bbburns21]

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