According to the Taylor rule:
A. for every 1 percentage point that unemployment exceeds the natural rate of
unemployment, there is a 2-percentage-point gap between potential and actual GDP.
B. growth in the money supply should be limited to the long-run average growth rate of real
GDP.
C. if inflation rises by 1 percentage point above its target, then the Fed should raise the real
federal funds rate by one-half a percentage point.
D. the rate of money growth should be set at 4 percent per year.
C. if inflation rises by 1 percentage point above its target, then the Fed should raise the real
federal funds rate by one-half a percentage point
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A group of nations that grants member special trade privileges is
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
Marginal utility is defined as:
a. the extra satisfaction the consumer receives from an extra $1 of income. b. the total level of satisfaction a consumer receives upon the consumption of a certain number of goods. c. the number of hours a consumer would be willing to work to receive a certain product. d. the extra satisfaction a person derives from consuming an additional unit of a good. e. a comparison of the utility a good provides with the price of that good.