If a shock raises inflation, how fast should the central bank reduce it to its target level?
What will be an ideal response?
If a shock raises inflation, the central bank should reduce it but it should also consider the state of the economy while doing so. The speed of the central banks' actions should depend on the exact costs in terms of lost output, which are likely to be specific to the situation. If inflation has arisen due to an oil price shock, the central bank may be slower to tighten its policy than it would be if inflation has risen due to an increased demand for goods by foreign countries. That is shocks to the economy's aggregate supply of goods will be treated differently from shocks to the economy's aggregate demand for goods.
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Indicate whether the statement is true or false.
When did the Personnel Research Board of the Ohio State University begin a study to determine effective leadership styles?
a. 1935 b. 1954 c. 1945 d. 1968
During this stage of the organizational design process a team drafts an image of the new organizational structure, which outlines the interconnections between different roles and departments?
a. Understanding the business climate b. Transforming the design c. Evaluating he design d. Setting the scene
If travel between departments is restricted to the aisles shown in Figure 1, what is the total weighted-distance (wd) score for the block plan shown in Revision 1?
A) less than or equal to 30 B) greater than 30 but less than or equal to 60 C) greater than 60 but less than or equal to 90 D) greater than 90