To Determine Whether the Goal of Stable Prices Is Being

Multiple Choice

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whether the goal of maximum employment is being achieved, the Federal Reserve monitors ________.

A) core CPI inflation rate; the natural unemployment rate
B) CPI; the gap between nominal GDP and real GDP
C) core GDP deflator inflation rate; the natural unemployment rate
D) core PCE deflator inflation rate; the output gap
E) GDP price deflator; real GDP