Author Question: Which of the following is NOT a basis for the Taylor-rule guideline for how the Federal Reserve ... (Read 73 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?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

For a complete list of videos, visit our video library