Who officially determines whether the economy is in a recession or expansion?

Adjusting monetary growth based on previous changes in nominal GDP

A) is relatively easy for the Fed to undertake because the implementation lag is quitelong. B) could be destabilizing because of the uncertainty of the length of impact lags. C) is an effective policy because it allows the Fed to influence future macroeconomic performance. D) raises the price level proportionately.

Assuming a nominal interest rate of 6 percent, an unemployment rate of 4 percent, and an inflation rate of 2 percent, the real interest rate is approximately

A) 2 percent. B) 4 percent. C) 6 percent. D) 8 percent.