Recall the Application. When applying the Taylor Rule to the decade of 2000, economist John Taylor found that past experience showed that from 2001 to 2004, the Fed should have ________ interest rates instead of ________ interest rates.
A) raised; not changing B) not changed; lowering
C) lowered; raising D) raised; lowering
Question 2
The labor force is the
A) total population divided by the number of employed people.
B) number of employed people plus the number of unemployed people.
C) working-age population minus the number of unemployed people.
D) number of employed people minus the number of unemployed people.
E) number of employed people in the working-age population.