Potential Advantages of Nominal GDP Targeting Include

question 17

Multiple Choice

Potential advantages of nominal GDP targeting include

• A)it implies that the central bank will respond to slowdowns in the real economy even if inflation is not falling.
• B)real GDP growth that is below potential or inflation that is below the inflation objective will encourage more expansionary monetary policy.
• C)it focuses not only on controlling inflation but also explicitly on stabilizing real GDP.
• D)all of the above.

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Definitions:

Farmer

An individual engaged in the practice of agriculture, raising living organisms for food or raw materials.

Percentage-Of-Completion Method

An accounting technique used in long-term contracts, recognizing revenue and expenses based on the project's estimated completion level.

Revenue

The total income generated from normal business operations and before any costs or expenses are deducted.

Progress Payments

Payments made on a contract in advance of the final delivery, typically based on the completion of certain stages or milestones within the project.