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.

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Definitions:

New Equipment

Assets recently acquired by a business for operational purposes, such as machinery, computers, or office furniture.

Government Permits

Official permissions granted by governmental bodies that allow individuals or companies to conduct certain activities that would otherwise be prohibited.

Develop Land

The process of making land suitable for construction or other use, which may involve clearing, grading, and installing infrastructure such as roads and utilities.

Landscaping

The art and practice of designing and maintaining outdoor spaces for aesthetic or functional purposes.