Assume the following macroeconomic conditions in the United States and that US policy makers desire to achieve their three macro-policy goals defined in the usual way. A. Output has fallen below potential output, creating a large negative output gap. B. The employment rate has fallen, creating an unemployment rate of 8%. C. The inflation rate has risen to 10% per year Which statement is CORRECT? Output is too high, the unemployment rate is too high; and inflation rate is too high. Output is too low, the employment rate is too high; and the inflation rate is too high Output is too high; the employment rate is too low; and the inflation rate is too low Output is too low, the unemployment rate is too high; and the inflation rate is too high Output is too low, the unemployment rate is too low, and the inflation rate is too high

Assume the following macroeconomic conditions in the United States and that US policy makers desire to achieve their three macro-policy goals defined in the usual way. A. Output has fallen below potential output, creating a large negative output gap. B. The employment rate has fallen, creating an unemployment rate of 8%. C. The inflation rate has risen to 10% per year Which statement is CORRECT? Output is too high, the unemployment rate is too high; and inflation rate is too high. Output is too low, the employment rate is too high; and the inflation rate is too high Output is too high; the employment rate is too low; and the inflation rate is too low Output is too low, the unemployment rate is too high; and the inflation rate is too high Output is too low, the unemployment rate is too low, and the inflation rate is too high

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter15: Macroeconomic Viewpoints: New Keynesian, Monetarist, And New Classical

Section: Chapter Questions

Problem 4E

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