6. Which of these is a tool used by the Federal Reserve to conduct monetary policy?

a. changes in the prime rate

b. issuing new government bonds and retiring old ones

c. buying and selling corporate bonds

d. buying and selling federal government bonds

7. In the short run, a lower _____ rate may be achieved at the cost of _____.

a. unemployment; a higher unexpected inflation rate

b. unemployment; a lower inflation rate

c. employment; a slightly higher unexpected inflation rate

d. employment; hyperinflation

10. Consumer confidence in the economy increases greatly, and consumers increase spending significantly. Production does not increase as fast, and prices rise. This scenario describes:

a. demand-pull inflation.

b. a negative output gap.

c. cost-push inflation.

d. unanticipated deflation.

13. NOTE THAT THIS TABLE IS USED FOR MULTIPLE QUESTIONS. IT WILL HELP YOU TO COPY THE NUMBERS DOWN OR PUT THEM IN A SPREADSHEET.

The table shows data from the Bureau of Labor Statistics BLS for the years before and after the Great Recession and before and during the pandemic.

A-1. Employment status of the civilian noninstitutional population 16 years and over,

[Numbers in thousands]

What was the labor force participation rate for2019?