Unemployment, Inflation, and Economic Growth Flashcards
1
Q
What is the limitation faced by the owner in using the consumer price index?
A
She frequently adds new products and services to her business to appeal to her constantly changing customer base
2
Q
The federal reserve recently announced that it will promote an expansionary policy. It is expected that output will increase.
Which event will also occur as a result?
A
Prices will rise rapidly, and unemployment will fall
