If the Natural Rate of Unemployment Is 6%,but the Fed

question 6

Multiple Choice

If the natural rate of unemployment is 6%,but the Fed thinks it is 5% and attempts to use monetary policy to move unemployment from 6% to 5%,then in the short run which of the following variables will the Fed's policy raise?

• A)the price level and real GDP
• B)the price level but not real GDP
• C)real GDP but not the price level
• D)neither real GDP nor the price level

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Definitions:

Top-level Manager

Executives who are responsible for controlling and overseeing the entire organization.

Recall Notice

A notification issued by a manufacturer to inform consumers of a defect or safety concern with a product and to return, repair, or replace it.

Crisis Management

The process by which an organization deals with a disruptive and unexpected event that threatens to harm the entity or its stakeholders.

Contingency Plan

A strategy or plan developed to address unforeseen events or emergencies to minimize impact and ensure continuity of operations.