The Taylor rule specifies
a. a constant relationship between interest rates and output.
b. a constant relationship between interest rates, output, and inflation.
c. a flexible relationship between interest rates, output, and inflation.
d. a fixed relationship between inflation and output.
e. none of the above.
B
You might also like to view...
The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour
After this minimum wage is in effect, and taking account of the resources lost in job search, workers' surplus equals ________. A) $800 B) $900 C) $400 D) $1,800 E) $200
What kind of information is conveyed in a time-series graph?
What will be an ideal response?
The price elasticity of demand for labor will be smaller, the
A) smaller is the price elasticity of demand for the final product. B) easier it is to employ substitute inputs in production. C) larger is the proportion of wage costs in the total cost of production. D) longer is the time period under examination.
Higher unemployment benefits funded by higher taxes on earnings would: a. decrease aggregate supply in an economy. b. increase the supply of labor in an economy. c. increase the price level in an economy
d. decrease aggregate demand in an economy. e. increase the opportunity cost of leisure.