According to the Central Bank Learning Story,the Central Bank

question 50

Multiple Choice

According to the Central Bank Learning Story,the central bank

• A) always prefers lower inflation and higher output.
• B) always prefers lower inflation and sometimes prefers higher output.
• C) sometimes prefers lower inflation and always prefers higher output.
• D) sometimes prefers lower inflation and sometimes prefers higher output.
• E) always prefers lower inflation and lower output.

---

Definitions:

Price

The amount of money required to purchase something or the value that consumers are willing to exchange for a good or service.

Midpoint Method

A technique used in economics to calculate the elasticity of a variable relative to another, minimizing the variability of the measurement regardless of the direction of change.

Price Elasticity

An indicator of the extent to which the demand or supply for a product shifts following a variation in its cost.

Metric System

A decimal system of units based on the meter, kilogram, second, etc., used for scientific and most international measures.