« previous next »

Author Question: The cyclical unemployment rate changes with business cycle fluctuations. Indicate whether the ... (Read 79 times)

luminitza

  • Hero Member
  • *****
  • Posts: 555
on: Jun 29, 2018
The cyclical unemployment rate changes with business cycle fluctuations.
 
  Indicate whether the statement is true or false

Question 2

What is the main difference between an instrument rule and a targeting rule? Be sure to define each.
 
  What will be an ideal response?


paavo

  • Sr. Member
  • ****
  • Posts: 301
Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

An instrument rule sets the policy instrument using a formula based on the current state of the economy. A targeting rule sets the policy instrument at a level that makes the central bank's forecast of the ultimate policy goals equal to their targets. The main difference between the two is that the targeting rule is based on a forecast of the economy while the instrument rule is based on the state of the economy.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

An overview of the two stages of photosynthesis: light reactions and the Calvin cycle An overview of the two stages of photosynthesis: light reactions and the Calvin cycle
Krebs Citric Acid Cycle Krebs Citric Acid Cycle
Carbon Cycle Carbon Cycle
Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
Major regulatory factors controlling pyruvate dehydrogenase and the citric acid cycle Major regulatory factors controlling pyruvate dehydrogenase and the citric acid cycle
Events of the Somatic Cell Cycle Events of the Somatic Cell Cycle
Video: Prone Position

For a complete list of videos, visit our video library