Author Question: The Phillips curve shows: a. the relationship between the interest rate and the inflation rate. b. ... (Read 71 times)

D2AR0N · **on:** Jun 30, 2018

The Phillips curve shows:
a. the relationship between the interest rate and the inflation rate.
b. the relationship between the inflation rate and the rate of unemployment.
c. the relationship between the unemployment rate and the level of real GDP.
d. the relationship between the growth rate and the inflation rate.
e. the relationship between the rate of unemployment and the growth rate.

Question 2

In general, the Fed has not embraced a fixed-growth-rate monetary policy because:
a. its adoption would lead to a decrease in the employment rate in the U.S. economy.
b. no influential economists have come out in favor of it.
c. the Fed has to report to Congress, and Congress is not in favor of it.
d. the Fed prefers active fiscal policy.
e. they believe the economy is too complex to make such a policy work consistently.