Business, 10.12.2021 22:50 noodleboy0923

Determine whether the Federal Reserve would pursue contractionary monetary policy, expansionary monetary policy, or no change in policy in each of the following situations. a. Inflation is 10 percent, above its average of 3 percent in the last several years: (Click to select)No change in policyContractionary monetary policyExpansionary monetary policy.
b. The output gap is positive: (Click to select)Contractionary monetary policyNo change in policyExpansionary monetary policy.
c. Unemployment is at a record high: (Click to select)Contractionary monetary policyNo change in policyExpansionary monetary policy.
d. The economy is experiencing full employment: (Click to select)No change in policyContractionary monetary policyExpansionary monetary policy.
e. The economy is on the brink of deflation: (Click to select)No change in policyExpansionary monetary policyContractionary monetary policy.
f. A new technology causes output to surge: (Click to select)Expansionary monetary policyContractionary monetary policyNo change in policy.

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Determine whether the Federal Reserve would pursue contractionary monetary policy, expansionary mone...