Fed Policies Since the Mid-1980s Have Been Intended to

question 77

Multiple Choice

Fed policies since the mid-1980s have been intended to

• A)steepen the growth path of natural real GDP.
• B)taper down the growth rate of actual real GDP as it approaches natural real GDP.
• C)accelerate the growth rate of natural real GDP whenever actual real GDP exceeds it.
• D)use the "runway" of natural real GDP as a springboard to faster growth.

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Definitions:

Divine Plan

A belief in a predetermined course of events controlled or envisioned by a supernatural power.

Stoics

Adherents of Stoicism, an ancient Greek philosophy that teaches the development of self-control and fortitude as a means of overcoming destructive emotions.

Preconceived

Ideas, opinions, or judgments formed in advance without adequate evidence or experience.

Psychological Hedonist

Someone who believes that the pursuit of pleasure is the most important motivation for human actions.