Multiple Choice
Potential advantages of nominal GDP targeting include
A) it implies that the central bank will respond to slowdowns in the real economy even if inflation is not falling.
B) real GDP growth that is below potential or inflation that is below the inflation objective will encourage more expansionary monetary policy.
C) it focuses not only on controlling inflation but also explicitly on stabilizing real GDP.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: The rational expectations hypothesis implies that when
Q13: Potential weaknesses of nominal GDP targeting include<br>A)it
Q14: Suppose that there is a negative aggregate
Q15: Approaches to establishing central bank credibility include<br>A)continued
Q16: Arguments for discretionary policies include<br>A)policy rules can
Q18: A rise in short-term interest rates that
Q19: The Lucas critique indicates that<br>A)advocates of discretionary
Q20: Whether one views the discretionary policies of
Q21: According to the Lucas critique,if past increases
Q22: Lucas argues that when policies change,expectations will