Which of the following is not an argument against inflation targeting?
A) Inflation targeting reduces the flexibility of the Fed to pursue other policy goals.
B) Inflation targeting assumes that the Fed can accurately forecast future inflation rates.
C) Inflation targeting makes monetary policy ineffective because the targets are publicly announced.
D) Inflation targeting holds the Fed accountable for an inflation goal, but may make it less likely the Fed will achieve other goals.
Answer: C
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The zero discharge goal
a. calls for the total elimination of water-polluting releases b. is overly ambitious c. is inherently benefit-based d. all of the above e. none of the above
Nominal GDP is $12 trillion and real GDP is $15 trillion. What is the GDP deflator? Show your work
In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 8.3 percent B) 5.6 percent C) 11.1 percent D) 9.4 percent E) none of the above
Monetarists advocate that the
A. money supply should be increased during inflation and reduced during recession. B. money supply should be reduced during inflation and increased during recession. C. money supply should be increased by a constant rate year after year. D. counter cyclical approach to fiscal policy be adopted.