If a Central Bank Had to Give Up Its Discretion

question 26

Multiple Choice

If a central bank had to give up its discretion and follow a rule that required it to keep inflation low,

• A)the short-run Phillips curve would shift up.
• B)the short-run Phillips curve would shift down.
• C)the long-run Phillips curve would shift right.
• D)the long-run Phillips curve would shift left.

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Definitions:

Support Department Costs

Indirect costs incurred by units or departments that do not directly produce goods or services but support those who do, such as human resources or IT departments.

Product Costs

Costs that are directly associated with the production of goods, including materials, labor, and overhead.

Support Department Costs

Overhead costs associated with functions that do not directly contribute to the production of goods or services but are necessary for operational efficiency.

Production Departments

Specific areas or units within a manufacturing facility where distinct phases of the production process are carried out.