Home / Questions / The Humphrey Hawkins Act of 1978 demanded that the Federal Reserve try to have an unemplo...
The Humphrey-Hawkins Act of 1978 demanded that the Federal Reserve try to have an
unemployment rate of 0 percent.
12. According to neo-Keynesians, the long-run Phillips curve is essentially horizontal.
13. According to the rational expectations school, expansionary fiscal policy is harmful to the
economy, but expansionary monetary policy can be effective when the Fed tries specific
targeting.
14. Supply-side economists argue for substantial regulation in the economy, particularly in
banking, energy, and transportation.
15. Unemployment insurance and the progressive income tax are two examples of automatic
stabilizers.
16. Classical economists believe that all markets are basically competitive and all prices are
flexible.
17. Neo-Keynesians believe that the government will never have to choose between policies
to control unemployment and policies to control inflation.
18. Keynesian economists worked at perfecting techniques of economic stabilization in order
to fine-tune the economy.
19. The Phillips curve is stable over time.
20. The inflation and unemployment rates experienced during the 1960s seemed to indicate
that the economy was operating on the vertical segment of the aggregate supply curve.
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