If the Federal Reserve Wishes to Avoid Short-Run Increases in the Unemployment

question 166

Multiple Choice

If the Federal Reserve wishes to avoid short-run increases in the unemployment rate,the correct response to a negative AD shock would be:

• A) an increase in government spending growth.
• B) a tax cut.
• C) an increase in money supply growth.
• D) a lower goal for inflation.

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Definitions:

Salaries

Payments made to employees, typically on a regular basis, for performing their job duties.

Administrative Department

A division within a company or organization that focuses on tasks related to the management and running of the organization, such as human resources, finance, and operations.

Occupied Space

Occupied space refers to the area within a property or facility that is currently being used or rented out, as opposed to areas that are vacant or unused.

Administrative Costs

Expenses related to the general operation of a business, including salaries of non-sales personnel, rent, utilities, and office supplies.