What is the Taylor rule and how does it work?
What will be an ideal response?
The Taylor rule is an instrument rule. The Taylor rule is a proposed formula for setting the federal funds rate. Taylor proposes that if his formula is followed inflation will stay close to 2 percent a year and real GDP will remain closer to potential GDP, thereby improving macroeconomic performance. The formula is based on the core inflation rate and the output ga
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Give a specific example that shows clearly how the System of National Accounts endorsed by the United Nations fails to properly capture activity that harms the environment. Now, suggest a way to quantitatively correct the flaw in the particular case that you describe in part (a).
What will be an ideal response?
What is securitization?
What will be an ideal response?
A point lying to the northeast of the production possibilities frontier is
A) unattainable. B) efficient. C) inefficient. D) profitable.
Refer to the accompanying figure. If Laura and Chris are the only two consumers in this market, then at a price of $2.00 per pound, the market demand for hamburger is:
A. 8 pounds per week. B. 4 pounds per week. C. 2 pounds per week. D. 6 pounds per week.