« previous next »

Author Question: The cyclical unemployment rate changes with business cycle fluctuations. Indicate whether the ... (Read 34 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?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Variation in the rate of evolution as a function of the strength of selection, assuming genetic drif Variation in the rate of evolution as a function of the strength of selection, assuming genetic drif
The carbon cycle. Numbers are storage as 1015 g or fluxes as 1015 g per year (data from Schlesinger The carbon cycle. Numbers are storage as 1015 g or fluxes as 1015 g per year (data from Schlesinger
Release of Acetylcholine During the Sleep–Waking Cycle Release of Acetylcholine During the Sleep–Waking Cycle
Calvin cycle Calvin cycle
The cardiac cycle and an ECG tracing. The cardiac cycle and an ECG tracing.
Events of an Ovarian/Mentrual Cycle Lasting Twenty-Eight Days Events of an Ovarian/Mentrual Cycle Lasting Twenty-Eight Days
Video: Secondary and tertiary levels of protein structure Animation

For a complete list of videos, visit our video library