Suppose That,in an Economy,ADI = 800 + 0

question 115

Multiple Choice

Suppose that,in an economy,ADI = 800 + 0.9Y - 20,000r,and the central bank acts according to the following monetary policy rule:
If inflation is 0%,the central bank will set a real interest rate of ________%,and short-run equilibrium output will be equal to _________.

• A) 0;8,000
• B) 1;8,000
• C) 1;6,000
• D) 1;5,000
• E) 1.5;5,000

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Definitions:

Forecast Error

The difference between the actual demand and the forecasted demand, often used as a measure of the accuracy of demand forecasts.

Forecast Error

The difference between the actual demand and the forecasted demand, highlighting inaccuracies in demand planning.

Forecast Error

The variance between what actually happens and the forecasts from prediction models.

Expected Value

Expected value is a concept in probability that calculates the average outcome when the future involves scenarios that may or may not happen.