According to the Taylor Rule, the Fed Will Set the Federal

question 353

Multiple Choice

According to the Taylor rule, the Fed will set the federal funds rate target based on which of the following?

• A) an estimated long-run real interest rate
• B) the current deviation of the actual inflation rate from the Fed's inflation objective
• C) the proportionate gap between actual real GDP and a measure of potential real GDP
• D) all of the above

---

Definitions:

Antitrust Prosecution

Legal action taken against companies or entities suspected of engaging in practices that restrict competition, violating antitrust laws designed to protect free trade and competition.

Right To Work Laws

Legislation that prohibits agreements between labor unions and employers that make membership or payment of union dues or fees a condition of employment, either before or after hiring.

Wagner Act

A foundational statute in United States labor law that guarantees the right of private sector workers to organize into trade unions, engage in collective bargaining, and take collective action.

Union Power

The influence labor unions have over working conditions, wages, and benefits for their members through negotiation and collective action.