The Measure for the Actual Rate of Inflation Used in the Taylor

question 76

Multiple Choice

The measure for the actual rate of inflation used in the Taylor rule is the:

• A)Personal Consumption Expenditure Index.
• B)GDP deflator.
• C)Consumer Price Index.
• D)Producer Price Index.

---

Definitions:

Keynesian Economists

Economists who believe that demand-side factors are critical in determining the level of economic activity, advocating for government intervention to manage demand.

Macroeconomic Policy

Strategies and actions taken by a government or central bank to regulate and control the economy as a whole, including fiscal and monetary policies.

Full Employment

When a society’s resources are all being used with maximum efficiency.

Monetarists

Monetarists believe in controlling the supply of money as a method for regulating the economy and combating inflation.