Suppose Most Economists Agree That the Target Rate of Unemployment

question 119

Multiple Choice

Suppose most economists agree that the target rate of unemployment is between 4 and 7 percent. If the actual unemployment rate is 11 percent, then most economists would agree that:

• A)both expansionary and contractionary policies are appropriate.
• B)expansionary monetary and fiscal policies are appropriate.
• C)contractionary monetary and fiscal policies are appropriate.
• D)neither expansionary nor contractionary policies are appropriate.

Analyze and synthesize information from statistical experiments to make informed conclusions.

Understand the concept of hypothesis testing for the difference between two means.

Apply the t-test for independent samples to real-world data.

Interpret t-test results and make conclusions about population means.

---

Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one particular alternative is chosen.

Rate Of Interest

The percentage of an amount of money which is charged for its use per period of time, often expressed annually.

Unit Banking States

States in the U.S. where banks are required to operate only a single banking office, limiting their physical presence and expansion.

Bank Charter

A legal document that authorizes the creation of a banking institution and outlines its operations.