The components of the formula for the Taylor rule includes each of the following, except:
A. the current inflation rate.
B. the inflation gap.
C. the 30-year U.S. Treasury bond rate.
D. the target federal funds rate.
Answer: C
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The expenditure approach measures GDP by adding
A) compensation of employees, rental income, corporate profits, net interest, and proprietors' income. B) compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation. C) compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracting subsidies paid by the government. D) consumption expenditure, gross private domestic investment, net exports of goods and services, and government expenditure on goods and services.
The economy is at full employment when
A) there are no unemployed workers. B) all unemployment is frictional or structural. C) there are fewer unemployed workers than available jobs. D) all unemployment is cyclical.