To Determine Whether the Goal of Stable Prices Is Being

question 87

Multiple Choice

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the_{--------------------}; to determine whether the goal of maximum employment is being achieved, the Federal Reserve monitors_{--------------------} .

• A)CPI; the gap between nominal GDP and real GDP
• B)core CPI inflation rate; the natural unemployment rate
• C)core GDP deflator inflation rate; the natural unemployment rate
• D)GDP price deflator; real GDP
• E)core PCE deflator inflation rate; the output gap

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Definitions:

Critical Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Coincidence

A situation in which events happen at the same time in a way that is not planned or expected.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Restaurant

A business that prepares and sells food and drinks to customers.