If the Fed Were to Allow Unemployment to Remain at a Higher

question 115

Multiple Choice

If the Fed were to allow unemployment to remain at a higher level than NAIRU:

• A) It would lead to deflation.
• B) the dual mandate would be violated.
• C) they would fail to maintain full employment.
• D) All of these statements are true.

---

Definitions:

Superego

A component of Freud's psychoanalytic theory referring to the moral part of the mind that internalizes societal rules and standards.

Dopamine

A neurotransmitter in the brain that is involved in controlling movement and posture, as well as modulating mood, pleasure, and reward.

Genetic Component

Refers to traits or conditions that are influenced by genes inherited from one's parents.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity.