Inflation targeting is a framework for carrying out monetary policy whereby
A) the central bank adopts a rigid target for inflation and ignores declines in output.
B) the central bank commits to achieving a publicly announced level of inflation.
C) the central bank commits to achieving a target level of inflation which is never announced publicly.
D) the central bank commits to a monetary growth rule.
Answer: B
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In his concept of “the invisible hand,” Adam Smith explains that
A. if each person looks out for himself or herself, then chaos will inevitably ensue. B. the pursuit of self-interest promotes economic well-being for society as a whole. C. governmental rule actually results in greater good than is apparent at the time. D. traditional religion is an appropriate guide for human behavior. E. All of the responses are correct.
During which of the following decades has the output ratio been staying closest to zero?
A) 1960s B) 1970s C) 1980s D) 1990s
If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards (SUPs) at each price of SUPs, then
a. we will observe a movement downward and to the right along the demand curve for SUPs. b. we will observe a movement upward and to the left along the demand curve for SUPs. c. the demand curve for SUPs will shift to the right. d. the demand curve for SUPs will shift to the left.
A firm's long-run average cost curve is increasing as output increases over all levels of output. As a result
A. small firms would have higher average costs of production than large firms. B. there should be more than one firm in the industry. C. there should be only one firm in the industry. D. small firms and large firms will have identical average costs.