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When the Economy Was at Full Employment in the Late

Question 127

Multiple Choice

When the economy was at full employment in the late 1990s,the price level was continually rising.This meant


A) the Fed was pursuing a passive monetary policy.
B) the Fed was pursuing an active monetary policy.
C) hawk and dove policies canceled each other out.
D) the economy's self-correcting mechanism was not operating.
E) none of the above.

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