Although Real Variables Such as Unemployment and Real GDP Are

question 28

Multiple Choice

Although real variables such as unemployment and real GDP are the best measures of economic performance, most economists do not advocate manipulating money supply directly to hit a real target because:

• A) they believe a constant growth rate of the money supply is the best way to stabilize real GDP or unemployment.
• B) if the Fed chose a target that was not natural output or the natural unemployment rate, the result would be accelerating inflation or deflation.
• C) if the Fed chose a target for the unemployment rate above the natural rate, the result would be accelerating inflation.
• D) if the Fed chose a target for the unemployment rate below the natural rate, the result would be accelerating deflation.

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Definitions:

Genetic Screening

A systematic search through a population for individuals with a genotype or karyotype that might cause a serious genetic disease in them or their offspring.

Newborns

Very young babies, often defined as being within the first hours to several weeks of life.

Adults

Mature individuals of a species, who have reached the developmental stage where they have full growth and are typically capable of reproduction.

FISH

Fluorescence in situ hybridization, a molecular cytogenetic technique used to detect and localize the presence or absence of specific DNA sequences on chromosomes.