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:

Unlimited Wants

The economic concept that human desires and needs are infinite and vary in intensity, contrasting with limited available resources.

Normative

In economics and philosophy, refers to statements or propositions that express values, ethics, or moral prescriptions, indicating how things ought to be.

Positive

Characterized by or indicating the presence or affirmative action of a feature, condition, or outcome.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.