This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The long-run Phillips curve is vertical at the expected rate of inflation. Is the previous statement ... (Read 104 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Jun 29, 2018
The long-run Phillips curve is vertical at the expected rate of inflation. Is the previous statement correct or incorrect?
 
  What will be an ideal response?

Question 2

Under a nominal GDP targeting rule, the Federal Reserve
 
  A) changes the interest rate only when real GDP, and hence nominal GDP, is off target.
  B) cannot use the federal funds rate to conduct monetary policy.
  C) must publish its expected inflation rate.
  D) lowers its interest rate when nominal GDP falls below target.
  E) loses its ability to influence the inflation rate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jackie

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is incorrect because the long-run Phillips curve is vertical at the natural unemployment rate.

Answer to Question 2

D


littleanan

  • Member
  • Posts: 575
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

bdobbins

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Associative Long-Term Potentiation Associative Long-Term Potentiation
Vertical filing systems offer an alternative to traditional upright storage systems Vertical filing systems offer an alternative to traditional upright storage systems
The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve. The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve.
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
Population growth and growth rate, 1950 - 2100 Population growth and growth rate, 1950 - 2100
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
Video: Green alga life cycle Animation

For a complete list of videos, visit our video library