Assume the Actual Unemployment Rate Is Equal to the Nonaccelerating

question 131

Multiple Choice

Assume the actual unemployment rate is equal to the nonaccelerating inflation rate of unemployment (NAIRU) of 5 percent.If the Fed wants to raise the inflation rate permanently from 1 percent to 3 percent,it should ________ the target for the federal funds rate so the economy's equilibrium moves ________ along the short-run Phillips curve.

• A) raise; up
• B) raise; down
• C) lower; up
• D) lower; down

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Definitions:

9-pin Black Deutsch

A type of rugged electrical connector commonly used in automotive and industrial applications for signal and power.

9-pin Green Deutsch

A specific type of durable, waterproof electrical connector commonly used in automotive and marine applications for secure electrical connections.

Multiplexed Truck Chassis

A complex electrical system in trucks that allows multiple signals to be sent over a single data bus, enhancing functionality and diagnostics.

Reduction

The process of decreasing or lowering the size, amount, or degree of something.