This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the measured unemployment rate is 4.5 and the true natural rate of unemployment is 5.1. What ... (Read 77 times)

soccerdreamer_17

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
Suppose the measured unemployment rate is 4.5 and the true natural rate of unemployment is 5.1. What should policymakers do in this situation? Suppose that the chair of the Federal Reserve believes the natural rate of unemployment to be 4.0.
 
  What will the chair of the Fed do in this situation, and will this be a good decision?

Question 2

The most people live in ________ economies, and the fewest people live in ________ economies.
 
  A) developing; emerging market
  B) advanced; emerging market
  C) advanced; developing
  D) emerging market; developing
  E) developing; advanced


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

janeli1

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jun 29, 2018
Answer to Question 1

If the true natural rate of unemployment is above the measured unemployment rate, this means that policymakers should try to slow the economy. If the chair of the Fed believes the natural rate of unemployment to be below the measured unemployment rate, she will stimulate the economy, which will be a bad decision as the economy may become overstimulated and result in an increase in the inflation rate.

Answer to Question 2

A


soccerdreamer_17

  • Member
  • Posts: 552
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

A Glitch Interrupts the Vela Pulsar’s Spindown Rate A Glitch Interrupts the Vela Pulsar’s Spindown Rate
Factors influencing pulse rate Factors influencing pulse rate
Blending inheritance formed the basis of nineteenth-century critiques of evolution by natural select Blending inheritance formed the basis of nineteenth-century critiques of evolution by natural select
How would you rate your overall health?” The percent of adults answering “excellent” or ... How would you rate your overall health?” The percent of adults answering “excellent” or ...
La Niña: The impact of natural cycles La Niña: The impact of natural cycles
Responses to artificial and natural selection Responses to artificial and natural selection
Video: Oxygen transport - methods and oxyhemoglobin

For a complete list of videos, visit our video library