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:

Corporate Charitable Giving

The donation of funds, goods, or services to charitable causes by corporations to support various social, environmental, or community objectives.

Social Responsibility Strategy

An approach by a company to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Corporate Misconduct

Unethical or illegal actions taken by a company or its employees, which can include fraud, insider trading, and environmental violations among others.

Mid-level Managers

Managers who report to top-level executives and oversee the activities of first-level managers, responsible for implementing organizational policies and procedures.