When the central bank announces the inflation rate that it will achieve over the next one to four years, it is following a strategy known as
A) money targeting.
B) inflation targeting.
C) a currency board.
D) real business cycle targeting.
B
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Blueland is a small island country which specializes in the production of yachts. It has a Cobb-Douglas aggregate production function
i) How will the production of yachts get affected if the technology used for production in Blueland improves? ii) How will Blueland's output get affected if both efficiency units of labor and capital stock increase by 12.5% but the level of technology remains unchanged?
Which of the following is not an impure public good?
a. a full movie theatre b. a fairly congested highway c. a swimming pool at ninety percent capacity d. the average major league baseball game in early April
Which statement is true about supply?
A. There is an inverse relationship between price and quantity supplied B. Supply refers to the amount of inventory that sellers have in their warehouses C. As price decreases, producers are willing to put more of the good on the market for sale D. To entice producers to offer more of a good on the market for sale, price must rise
Suppose a firm has the following total cost function TC = 100 + 2q2. If price equals $20, what is the firm's output decision? What are its short-run profits?
What will be an ideal response?