In the Long Run, If the Fed Decreases the Rate

question 318

Multiple Choice

In the long run, if the Fed decreases the rate at which it increases the money supply,

• A)inflation will be lower.
• B)unemployment will be higher.
• C)real GDP will be lower.
• D)All of the above are correct.

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Definitions:

Industrial Unions

Labor unions organizing all workers in an industry under one association, no matter the job each worker performs.

Craft Unions

Labor unions that represent workers specialized in particular crafts or trades, focusing on skills and qualifications rather than the industry or sector.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with all other factors being held constant.

Immigration

The act of moving to a new country or region with the intention of settling there.