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:

Adhesive Strips

Strips with a self-adhesive side used for closing superficial cuts, lacerations, or for securing bandages.

Hydraulic Lift

A lifting device powered by fluid pressure, commonly used to elevate heavy objects or people, especially in healthcare and industrial settings.

Postural Drainage

A technique to clear mucus from the lungs by positioning the body so that gravity helps in the drainage process.

Trendelenburg's Position

A medical position where the patient lies on their back with the legs elevated higher than the head, used to improve blood flow or for specific surgeries.