Author Question: The actual real wage is lower than the expected real wage if A) actual unemployment is less than ... (Read 45 times)

ec501234 · **on:** Jun 29, 2018

The actual real wage is lower than the expected real wage if

A) actual unemployment is less than actual inflation.
B) expected inflation is less than actual inflation.
C) actual inflation is less than expected inflation.
D) actual unemployment is less than expected unemployment.

Question 2

The Federal Reserve does not target both the money supply and an interest rate because

A) it would be too confusing to Wall Street and would disrupt the financial markets.
B) the Fed cannot achieve a target for both the money supply and an interest rate at the same time.
C) it would be illegal according to the Federal Reserve Act.
D) it would be too easy for Wall Street to determine what policy the Fed is following and this would destabilize the economy.