To Set the Target Interest Rate, Central Banks Need to Know

question 103

Multiple Choice

To set the target interest rate, central banks need to know the size of the output gap.This requires measuring:

• A)Only the level of current gross domestic product
• B)Only the levels of current gross domestic product and potential gross domestic product
• C)Not only the levels of current gross domestic product and potential gross domestic product but also their growth rates
• D)Only the growth rates of current gross domestic product and potential gross domestic product

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Definitions:

Indirect Institutional Discrimination

When individuals are treated differently based on an unlawful criterion (physical disability, cultural origin, age, gender, religion), even though these actions were never intended to be discriminatory.

Discriminatory Policies

Practices or directives that result in unfair treatment of individuals or groups based on specific characteristics, such as race, age, or gender.

White Canadians

Individuals residing in Canada who identify as being of European descent or identify primarily with white cultural characteristics.

Democratic Racism

A system that advocates equality but in fact perpetuates minority differentiation and oppression.