Potential advantages of nominal GDP targeting include
A) it implies that the central bank will respond to slowdowns in the real economy even if inflation is not falling.
B) real GDP growth that is below potential or inflation that is below the inflation objective will encourage more expansionary monetary policy.
C) it focuses not only on controlling inflation but also explicitly on stabilizing real GDP.
D) all of the above.
D
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The interest rate falls if
a. the price level falls or the money supply falls. b. the price level falls or the money supply rises. c. the price level rises or the money supply falls. d. the price level rises or the money supply rises.
Alejandro Scoobertini owns a store specializing in soccer jerseys. In 2012, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for
$280,000. Based on this information, what was the value added at Alejandro's store in 2012? A. $70,000. B. $110,000. C. $280,000. D. $490,000.