In the Last Half of the 1990s, the Usual Short-Run

question 31

Multiple Choice

In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because

• A)the Fed held interest rates constant.
• B)the federal government balanced its budget.
• C)the U.S.personal savings rate rose.
• D)productivity (and thus aggregate supply) grew faster than previously.