Author Question: Which of the following is NOT a basis for the Taylor-rule guideline for how the Federal Reserve ... (Read 67 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
Which of the following is NOT a basis for the Taylor-rule guideline for how the Federal Reserve should set its target value for the federal funds rate?
 
  A) the current deviation of the actual inflation rate from the Fed's inflation objective
  B) the gap between actual real GDP and a measure of potential real GDP
  C) an estimated long-run real interest rate
  D) the present deviation of the actual unemployment rate from the Fed's unemployment objective

Question 2

Which of the following statements is true?
 
  A) There always exists some amount of unemployment in an economy.
  B) The unemployment in an economy normally increases at times of expansion and decreases at times of contraction.
  C) In almost every economy, each job opening is instantly filled by a qualified worker.
  D) The unemployment rate in an economy is constant over the long run.


whitcassie

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

For a complete list of videos, visit our video library