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 10%. C. The inflation rate has fallen to 1% per year. Which statement is CORRECT? Output is too high; the unemployment rate is too low; and inflation rate is too high. Output is too low; the unemployment rate is too high; and the inflation rate is too low. Output is too high; 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.

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 10%. C. The inflation rate has fallen to 1% per year. Which statement is CORRECT? Output is too high; the unemployment rate is too low; and inflation rate is too high. Output is too low; the unemployment rate is too high; and the inflation rate is too low. Output is too high; 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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