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:

Infant's Brain

Refers to the early developmental stage of the brain in infants, marked by rapid growth and the formation of critical neural connections.

Physical Abilities

The capacity to perform tasks or sports that require bodily strength, flexibility, coordination, or endurance.

Large Body Movements

Physical actions involving significant muscle groups, often referring to gross motor skills such as walking, jumping, or lifting.