The US Experience During the 1980s and 1990s Illustrates That

question 93

Multiple Choice

The U.S. experience during the 1980s and 1990s illustrates that

• A) fiscal policy is substantially more potent than monetary policy.
• B) a balanced budget is essential for the achievement of price stability.
• C) a monetary policy that keeps the inflation rate low and steady will help promote economic stability.
• D) there is a trade-off between inflation and unemployment-the unemployment rate can be reduced if we are willing to tolerate higher rates of inflation.

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Definitions:

Hiring Freeze

A policy or decision by an organization to temporarily halt the recruitment of new employees, often due to financial constraints.

Dismissal

The act of terminating an employee's contract, commonly due to performance issues, misconduct, or organizational restructuring.

Performance

The execution of tasks and duties by an employee or organization measured against preset standards.

Unemployment Compensation

Government-provided financial assistance to individuals who are unemployed through no fault of their own and are actively seeking work.