Suppose the inflation rate target is "0" and the long run federal funds target is also "0." If the federal funds rate set using the Taylor rule is 2% and output is above trend output by 1%, the inflation rate is ________

Refer to the scenario above. Which of the following techniques is used to arrive at the optimum decision in the scenario?

A) Optimization in levels B) Comparative statics C) Total net benefit approach D) Principal of Optimization at the Margin

The rate of unemployment can be calculated by

a. simply dividing all unemployed persons by all employed persons. b. subtracting those employed from the total labor force to find the number of unemployed and express this number as a percent of the total labor force. c. subtract those unemployed from the total labor force and express this number as a percent of the total labor force. d. dividing all unemployed by the population.