According to the Taylor rule,
a. the Fed would have the discretion to choose an appropriate inflation rate
b. the Fed would announce targets for the inflation rate and real GDP
c. the Fed would allow the inflation rate to increase by about 0.5 percent per year
d. the Fed would allow the price level to increase by about 0.5 percent per year
e. Congress would set an annual inflation rate target
B
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A profit-maximizing perfectly competitive firm should hire workers up to the point where labor's marginal revenue product equals the wage rate
Indicate whether the statement is true or false
"Rational, self-interested people would never end up worse off by any decision they make. Obviously, people often make mistakes or have regrets. Therefore, people do not act rationally or out of self-interest"
Do you agree with these statements? Why or why not?