49. “The snag is that governments, like voters, are naturally more interested in short-term than long-term growth. Inflationary policies can spur growth for a time, which is why politicians have often found them so tempting. This is the best argument for making central banks ………” This is best completed witha) responsible for fiscal policy b) subservient to governmentsc) independent of governments d) focus policy on unemployment50. “Undoubtedly, the amazing drop in the unemployment rate adds to pressure on Mr. Greenspan, the chairman of the Fed, to ……….” This is best completed witha) print more money b) fix the interest ratec) raise the interest rate d) lower the interest rate51. “For example, the upward shift in the Phillips curve that occurred in the early 1970s followed several years in which policymakers allowed money growth to accelerate in an (ultimately vain) attempt to keep __________. The downward shift in the mid 1980s occurred only after policymakers demonstrated that they were willing to _________ to move the inflation rate lower.”The blanks are best filled witha) interest rates low; reduce the NRU b) real growth low; cut money growthc) unemployment low; tolerate high unemploymentd) the economy at the NRU; impose wage-price controls
49. “The snag is that governments, like voters, are naturally more interested in short-term than long-term growth. Inflationary policies can spur growth for a time, which is why politicians have often found them so tempting. This is the best argument for making central banks ………” This is best completed witha) responsible for fiscal policy b) subservient to governmentsc) independent of governments d) focus policy on unemployment50. “Undoubtedly, the amazing drop in the unemployment rate adds to pressure on Mr. Greenspan, the chairman of the Fed, to ……….” This is best completed witha) print more money b) fix the interest ratec) raise the interest rate d) lower the interest rate51. “For example, the upward shift in the Phillips curve that occurred in the early 1970s followed several years in which policymakers allowed money growth to accelerate in an (ultimately vain) attempt to keep __________. The downward shift in the mid 1980s occurred only after policymakers demonstrated that they were willing to _________ to move the inflation rate lower.”The blanks are best filled witha) interest rates low; reduce the NRU b) real growth low; cut money growthc) unemployment low; tolerate high unemploymentd) the economy at the NRU; impose wage-price controls
49. “The snag is that governments, like voters, are naturally more interested in short-term than long-term growth. Inflationary policies can spur growth for a time, which is why politicians have often found them so tempting. This is the best argument for making central banks ………” This is best completed witha) responsible for fiscal policy b) subservient to governmentsc) independent of governments d) focus policy on unemployment50. “Undoubtedly, the amazing drop in the unemployment rate adds to pressure on Mr. Greenspan, the chairman of the Fed, to ……….” This is best completed witha) print more money b) fix the interest ratec) raise the interest rate d) lower the interest rate51. “For example, the upward shift in the Phillips curve that occurred in the early 1970s followed several years in which policymakers allowed money growth to accelerate in an (ultimately vain) attempt to keep __________. The downward shift in the mid 1980s occurred only after policymakers demonstrated that they were willing to _________ to move the inflation rate lower.”The blanks are best filled witha) interest rates low; reduce the NRU b) real growth low; cut money growthc) unemployment low; tolerate high unemploymentd) the economy at the NRU; impose wage-price controls
49. “The snag is that governments, like voters, are naturally more interested in short-term than long-term growth. Inflationary policies can spur growth for a time, which is why politicians have often found them so tempting. This is the best argument for making central banks ………” This is best completed witha) responsible for fiscal policy b) subservient to governmentsc) independent of governments d) focus policy on unemployment50. “Undoubtedly, the amazing drop in the unemployment rate adds to pressure on Mr. Greenspan, the chairman of the Fed, to ……….” This is best completed witha) print more money b) fix the interest ratec) raise the interest rate d) lower the interest rate51. “For example, the upward shift in the Phillips curve that occurred in the early 1970s followed several years in which policymakers allowed money growth to accelerate in an (ultimately vain) attempt to keep __________. The downward shift in the mid 1980s occurred only after policymakers demonstrated that they were willing to _________ to move the inflation rate lower.”The blanks are best filled witha) interest rates low; reduce the NRU b) real growth low; cut money growthc) unemployment low; tolerate high unemploymentd) the economy at the NRU; impose wage-price controls
