When a central bank targets inflation, its inflation targets are usually specified as
A) a specific inflation rate target, for example, 1 percent.
B) the short-term interest rate minus 2 percent.
C) a point on the short-run Phillips curve.
D) a range for the inflation rate.
E) deviations from the inflation rate.
D
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Refer to the Article Summary. Assuming the findings are correct and all else equal, higher increases in home values which result from close proximity to a Trader Joe's are an example of a ________ due to the location of the Trader Joe's
A) social cost B) private cost C) positive externality D) negative externality
If diplomas work efficiently in signaling productive capabilities to employers, the resulting equilibrium
A) will be a separating equilibrium. B) will be a pooling equilibrium. C) will always be inefficient. D) will never be efficient.