When Hit with a Real Negative Economic Shock, the Fed

Multiple Choice

When hit with a real negative economic shock, the Fed must make its policy choice between

A) too low of a growth rate and too high of an unemployment rate.
B) too low of a growth rate and too high of an inflation rate.
C) too high of a growth rate and too low wages.
D) too high of a growth rate and too low of a savings rate.