Policy makers should be aware that they
A. can never lower the unemployment rate without causing a rapid increase in the rate of inflation
B. can reduce unemployment without causing inflation if they start off slowly but intensify their efforts as the economy approaches full employment
C. may be able to stimulate the economy out of a deep recession without significantly accelerating inflation
D. must always deal with the large long-run tradeoff between inflation and unemployment
E. can announce a policy change, which will create more rational expectations and enable them to reduce inflation without any costs to society
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Assume that the share of whites in the labor force is 85% and their unemployment rate is 10% and that the share of non-whites in the labor force is 15% and their unemployment rate is 14%. What is the overall unemployment rate?
A. 0.124
B. 0.12
C. 11.6.4%
D. 0.106
E. 0.104
Which recessionary period below caused the highest unemployment rate the U.S.?
A. 1974/75
B. 1981/22
C. 1990/91
D. 2001-02-01 00:00:00
E. 2007-09-01 00:00:00
Assume the share of whites in the labor force is 86% and their unemployment rate is 6%; the share of non-whites in the labor force is 14% with an unemployment rate of 11%. What is the overall unemployment rate?
A. 0.063
B. 0.067
C. 0.074
D. 0.082
E. 0.085
Some research has found that a doubling of unemployment benefits can increase unemployment
A. by less than half a percentage point
B. by exactly 1 percentage point
C. by more than 2 percentage points
D. significantly since many unemployed will feel less urgency about finding a new job
E. none of the above
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