If Output Falls 1

question 220

Multiple Choice

If output falls 1.0 percentage point below its potential, the Taylor rule predicts that the Fed should:

Definitions:

Institutionalized Means

Established procedures and methods within societies and organizations that dictate how goals should be achieved.

High Success Goals

Objectives or ambitions that are set at very lofty standards, sometimes leading to pressure, stress, or unethical behavior in pursuit of these outcomes.

Anomie-Strain Theory

A sociological theory that views deviance as the result of the gap between societal goals and the legitimate means available to achieve those goals.

Breakdown of Social Norms

A situation in which traditional rules and standards of behavior are ignored or violated by a significant portion of the community, often leading to social chaos or disorder.