Although Real Variables Such as Unemployment and Real GDP Are

question 40

Multiple Choice

Although real variables such as unemployment and real GDP are the best measures of economic performance, most economists do not advocate manipulating money supply directly to hit a real target because:

• A)they believe a constant growth rate of the money supply is the best way to stabilize real GDP or unemployment.
• B)if the Bank of Canada chose a target that was not natural output or the natural unemployment rate, the result would be accelerating inflation or deflation.
• C)if the Bank of Canada chose a target for the unemployment rate above the natural rate, the result would be accelerating inflation.
• D)if the Bank of Canada chose a target for the unemployment rate below the natural rate, the result would be accelerating deflation.

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Definitions:

Azygous Vein

A vein running up the right side of the thoracic vertebral column, draining blood from the chest wall and upper lumbar region into the superior vena cava.

Intercostal Muscles

Muscles located between the ribs that assist with the breathing process by expanding and contracting the ribcage.

External Iliac Vein

A large vein in the pelvic region that carries deoxygenated blood from the lower limbs back to the heart.

Iliac Vein

A vein in the pelvis that carries blood from the lower limbs and the pelvis back to the heart.