In early 2021, an article in the New York Times quoted Fed Chair Jerome Powell as saying that "a robust job market can be sustained without causing an outbreak of inflation."

Source: Neil Irwin, "The Most Important Thing Biden Can Learn from the Trump Economy," New YorkTimes,January 11, 2021.

Part 1a. What did Powell mean by a "robust job market"?

A.

An increase in the number of temporary workers employed in multiple jobs to keep their incomes high.

B.

The lowering of full employment to 3% unemployment.

C.

Wages have risen.

D.

Unemployment rates below historical averages or below what was considered full employment.

Part 2b. The article indicates that Powell's statement was consistent with a "rethinking" on the part of Fed policymakers. How might the experiences of 2019 have contributed to Fed policymakers rethinking this view?

A.

The labor market had very high levels of unemployment and inflation was also high, not what the Fed would normally expect to exist simultaneously.

B.

The labor market had very low levels of unemployment and inflation was also extremely low, not what the Fed would normally expect to exist simultaneously.

C.

The labor market had very high levels of unemployment and inflation was also extremely low, not what the Fed would normally expect to exist simultaneously.

D.

The labor market had very low levels of unemployment and inflation was high, not what the Fed would normally expect to exist simultaneously.