Author Question: At full employment, A) the inflation rate is zero. B) the inflation rate must equal the natural ... (Read 122 times)

drink · **on:** Jun 29, 2018

At full employment,

A) the inflation rate is zero.
B) the inflation rate must equal the natural unemployment rate.
C) the unemployment rate is zero.
D) real GDP exceeds potential GDP.
E) the unemployment rate is equal to the natural unemployment rate.

Question 2

If the Fed increases the quantity of reserves, a new equilibrium is reached by a

A) leftward shift of the demand for reserves curve.
B) movement down the demand for reserves curve.
C) movement up the demand for reserves curve.
D) rightward shift of the demand for reserves curve.
E) None of the above answers is correct.