10. The natural unemployment rate in the United States has
varied over the last 50 years. According to the Congressional
Budget Office, the natural rate was 5.5% in 1960, rose to about
6.5% in the 1970s, and had declined to about 4.8% by 2000. What do
you think might have caused this variation?
11. Suppose the Fed begins carrying out an expansionary monetary
policy in order to close a recessionary gap. Relate what happens
during the next two phases of...