To determine whether the goal of stable prices is being achieved, ...

[ssal]

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.

[billybob123]

Answer to Question 1

B

Answer to Question 2

B

[ssal]

YES! Correct, THANKS for helping me on my review

[Sarahjh]

Excellent