In October 1979 the Fed Announced That It Would Focus

question 189

Multiple Choice

In October 1979 the Fed announced that it would focus on

• A)stabilizing interest rates
• B)specified targets for slowly falling interest rates
• C)specified targets for the long-run equilibrium price level
• D)specified targets for growth of the money supply
• E)stabilizing the long-run equilibrium price level

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Definitions:

Output

Refers to the total amount of goods or services produced by an entity in a given period.

Production Function

A mathematical relationship that describes the maximum amount of output that can be produced from a given set of inputs under certain technology.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs or resources.

Marginal Product

The increase in output resulting from a one-unit increase in the input, keeping all other inputs constant.