According to the textbook, the Fed's information is fairly imprecise in regards to all of these things EXCEPT:
A. size of output gaps.
B. actual real GDP.
C. speed of the effects of its actions.
D. potential GDP.
Answer: B
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In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month
If the law is strictly enforced, the maximum for which an apartment will rent on the black market is A) less than $600 per month. B) $600 per month. C) $700 per month. D) more than $700 per month.
The rule of 70 states that
A) the number of years it takes an economy to double in size is the growth rate times 70. B) the number of years it takes an economy to double in size is the growth rate divided by 70. C) it takes an economy 70 years to double its real GDP. D) the number of years it takes an economy to double in size is 70 divided by the growth rate.
Bonnie volunteers to help make floral arrangements at a flower shop. She is an example of
A) entrepreneurial ability. B) labor. C) physical capital. D) human capital.
We could try to use a powerful computer to construct a macroeconomic model including tens of thousands of demand and supply curves, for every market in the economy. This would not be a useful undertaking because
a. it would not be worth the increased level of complication and effort needed to collect all information b. the model would be simplistic c. the model would inevitably leave out important information d. the suggested prices would inevitably be wrong in each market e. the model would not be realistic