To Determine Whether the Goal of Stable Prices Is Being

question 112

Multiple Choice

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whether the goal of maximum employment is being achieved, the Federal Reserve monitors ________.

• A) core CPI inflation rate; the natural unemployment rate
• B) CPI; the gap between nominal GDP and real GDP
• C) core GDP deflator inflation rate; the natural unemployment rate
• D) core PCE deflator inflation rate; the output gap
• E) GDP price deflator; real GDP