If a Central Bank Had to Give Up Its Discretion

question 26

Multiple Choice

If a central bank had to give up its discretion and follow a rule that required it to keep inflation low,

• A)the short-run Phillips curve would shift up.
• B)the short-run Phillips curve would shift down.
• C)the long-run Phillips curve would shift right.
• D)the long-run Phillips curve would shift left.

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Definitions:

Inverted Organizations

Organizations where decision-making authority and power are decentralized to the lower levels of the organizational hierarchy, closer to the customer.

Leaderless Three-Person Teams

Small groups operating without a formal leader, emphasizing collective decision-making and responsibility.

Circular Organizations

Circular Organizations are companies that adopt a circular economy model, aiming to eliminate waste and continually use resources through recycling, reusing, and refurbishing.

Numerical Quotas

Predetermined numbers or percentages used to manage and control the composition or output of something, often used in employment or education settings for diversity purposes.