The Suggestion That the Fed Concentrate Only on Reducing Inflation

question 212

Multiple Choice

The suggestion that the Fed concentrate only on reducing inflation is an attempt to

• A)stabilize the level of unemployment and inflation.
• B)shift the long-run Phillips curve to the right.
• C)improve the efficiency of the self-correcting mechanism.
• D)simplify demand management by focusing on only one goal.

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Definitions:

Exponential Distributions

A type of continuous probability distribution that is often used to model the time between independent events that happen at a constant average rate.

Uniform Probability Distribution

A continuous probability distribution for which the probability that the random variable will assume a value in any interval is the same for each interval of equal length.

Continuous Random Variable

A Continuous Random Variable is a variable that can take an infinite number of values within a given range.

Probability Density Function

A function that describes the relative likelihood for a continuous random variable to occur at a point in the observation space.