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

question 231

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.

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Definitions:

Exempt Employee

An employee who is exempt from overtime pay and minimum wage requirements, typically based on their job duties and salary level.

FLSA

The Fair Labor Standards Act, a US labor law that sets out minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and in federal, state, and local governments.

Exempt Workers

Employees not covered by the Fair Labor Standards Act (FLSA), often not eligible for overtime pay due to their job type.

Promissory Estoppel

A legal principle preventing a party from retracting a promise which the other party has reasonably relied upon to their detriment.