Suppose most economists agree that the target rate of unemployment is between 5 and 8 percent. If the actual unemployment rate is 10 percent, then most economists would agree that:
Suppose most economists agree that the target rate of unemployment is between 5 and 8 percent. If the actual unemployment rate is 10 percent, then most economists would agree that:
Chapter1: Making Economics Decisions
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
Transcribed Image Text:Suppose most economists agree that the target rate of unemployment is between 5 and 8 percent. If the actual unemployment rate is 10 percent, then most
economists would agree that:
Multiple Choice
О
it would be appropriate for the government to increase interest rates.
it would be appropriate for the government to reduce interest rates.
it would be appropriate for the government to increase spending but not taxes.
О
it would be appropriate for the government to increase taxes but not spending.
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