Multiple Choice
The parameter 
(which governs the slope of the monetary policy reaction function) is determined by each of the following except
A) the term from Okun's law which tells us the change in the unemployment rate produced by a one percent change in real GDP relative to potential output.
B) the term which tells us how quickly the economy reacts to a supply shock.
C) the interest sensitivity of autonomous spending.
D) the multiplier.
Correct Answer:
Verified
Correct Answer:
Verified
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