What are the specific objectives of most central bankers?
What will be an ideal response?
Most central bankers pursue five specific objectives, though not necessarily simultaneously to the same degree. These include: low and stable inflation, high and stable real growth (together with high employment), stable financial markets and institutions, stable interest rates, and a stable exchange rate.
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Most economists believe that price indices
A) understate inflation and understate growth in real GDP. B) understate inflation and understate growth in nominal GDP. C) overstate inflation and understate growth in real GDP. D) overstate inflation and understate growth in nominal GDP.
One would expect a shift down in the Phillips curve if there was a(n)
a. a decrease in aggregate demand. b. decrease in government spending. c. decrease in the money supply. d. a shift in aggregate supply to the left. e. Any of the above
If the equilibrium price of aspirins is $2.50 and a price ceiling is imposed at $3.00, the eventual result after market adjustment will be a(n):
a. surplus. b. shortage. c. accumulation of inventories. d. equilibrium.
The short-run aggregate supply curve:
A. Becomes flatter at output levels above the full-employment output B. Becomes steep at output levels above the full-employment output C. Is upward-sloping with a constant slope D. Is horizontal