The Output Gap Can Be Used to Estimate the Extend

question 197

Multiple Choice

The output gap can be used to estimate the extend to which the Fed misses its goal of

• A) monetary policy.
• B) moderate long- term interest rates.
• C) maximum employment.
• D) stable prices.

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Definitions:

Exogenous

Originating from outside an organism or system.

Brain

The central organ of the human nervous system, responsible for processing information and controlling bodily functions.

Agonist

A substance that activates a receptor to produce a biological response.

Antagonist

in pharmacology, a substance that acts against and blocks an action. In literature, a character or force in conflict with the main character.