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

Author Question: Explain why the Fed does not consider zero unemployment as a desirable goal. What will be an ... (Read 15 times)

iveyjurea

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
Explain why the Fed does not consider zero unemployment as a desirable goal.
 
  What will be an ideal response?

Question 2

Profit maximization implies that firms will want to ________.
 
  A) accumulate capital while the MPK is greater than the real wage
  B) accumulate capital while the MPK is greater than the rental price of capital
  C) accumulate labor while the MPK is greater than the rental price of capital
  D) accumulate labor while the MPK is greater than the real wage
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lin77x

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jun 30, 2018
Answer to Question 1

If the unemployment rate was zero, cyclical unemployment would have to be negative and real GDP would greatly exceed potential GDP. When real GDP exceeds potential GDP, the inflation rate increases, which is not compatible with the Fed's goal of price stability.

Answer to Question 2

B


iveyjurea

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

To attain their goal of objectivity and accuracy in their research, sociologists must put away their ... To attain their goal of objectivity and accuracy in their research, sociologists must put away their ...
Mechanisms to Explain the Effects of Massage Mechanisms to Explain the Effects of Massage
Six-Step Process for Goal-Oriented Planning Six-Step Process for Goal-Oriented Planning
E9-23 Prepare income statements Explain the difference in operating income E9-23 Prepare income statements Explain the difference in operating income
Please fully explain the answer with steps Please fully explain the answer with steps
Explain the assumptions that must be satisfied in order to validly use the one-way ANOVA ... Explain the assumptions that must be satisfied in order to validly use the one-way ANOVA ...
Video: Structures that affect circulation - kidneys, blood volume and venous tone

For a complete list of videos, visit our video library