In order to achieve an unemployment rate below the natural rate of unemployment, the Fed must pursue a policy of low monetary growth during a time when the public expects high inflation.
a. True
b. False
Indicate whether the statement is true or false
Question 2
The nation's largest cable TV company tested the effect of a price reduction for premium movie channels. It lowered prices 10 and found that the number of customers rose by almost 50. This means:
a. the demand curve for the premium movie channels shifted to the right.
b. the supply curve for premium movie channels shifted to the left.
c. the demand for premium movie channels is elastic in this price range.
d. the demand for premium movie channels is inelastic in this price range.
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