If the Fed Were to Push Unemployment Below the NAIRU

question 34

Multiple Choice

If the Fed were to push unemployment below the NAIRU:

• A) inflation would likely increase.
• B) deflation would likely send the economy into a deflationary spiral.
• C) the dual mandate will have been met.
• D) the economy would be operating efficiently.

---

Definitions:

Egalitarian

A principle or practice that emphasizes equality, especially in rights, status, and opportunities among people.

Sensitivity

The ability to detect or respond to slight changes, signals, or influences; often used in the context of diagnostic tests or sensory perception.

Gender Awareness

The understanding and recognition of gender and its implications in society, including the awareness of gender roles and identities.

Concrete External Traits

Observable and measurable characteristics or behaviors of individuals that are not open to interpretation.