In the New Keynesian model, the central bank achieves its interest rate target
A) by announcing it.
B) by closing the output gap.
C) through money growth targeting.
D) by the supplying the quantity of money demanded at the target interest rate.
D
You might also like to view...
The data below relates to a pure monopoly and the product it produces. What is the profit-maximizing output and price for this firm?
A. P = $15; Q = 3
B. P = $12; Q = 5
C. P = $18; Q = 2
D. P = $14; Q = 4
High-skilled workers have
A) a lower value of marginal product because they have higher wages. B) the same labor supply curve as do low-skilled workers. C) more human capital than do low-skilled workers. D) None of the above answers is correct.
Slaver owners were optimistic about the economic future of slavery on the eve of the Civil War
Indicate whether the statement is true or false
Political competition between candidates, especially attempts to paint one's opponent as being extreme, shows that _____
a. the way to be a successful politician is to fight dirty b. cyclical majorities will never exist c. there is an opportunity for third parties d. politicians implicitly accept the validity of the median voter model