Author Question: To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ... (Read 69 times)

ssal · **on:** Jun 29, 2018

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whether the goal of maximum employment is being achieved, the Federal Reserve monitors ________.

A) GDP price deflator; real GDP
B) core PCE deflator inflation rate; the output gap
C) core CPI inflation rate; the natural unemployment rate
D) CPI; the gap between nominal GDP and real GDP
E) core GDP deflator inflation rate; the natural unemployment rate

Question 2

When the aggregate demand curve shifts,

A) the inflation rate does not change.
B) there is a movement along the short-run Phillips curve.
C) there is a change in potential GDP.
D) there is a change in the natural unemployment rate.
E) the short-run Phillips curve shifts.