When the central bank announces the desired inflation rate and sets policy to re

Question

When the central bank announces the desired inflation rate and sets policy to reach that rate, it is using: monetary neutrality policy. the Taylor rule. inflation targeting. fiscal policy. An increase in the money supply causes in output in the short run and in output in the long run. an increase; no change an increase; an increase no change; an increase no change; no change Monetary policy is similar among wealthy countries because the central banks of most countries: try to keep inflation between 2% and 3% per year. try to keep inflation between 5% and 6% per year. try to keep inflation between 0% and 2% per year. are trying to establish a single global currency. What distinction did Zimbabwe achieve in June 2008? It was the first African nation to become a democracy. It ended apartheid. It had the world's highest inflation rate. It had the world's highest unemployment rate. During hyperinflation in Germany in 1922-1923, prices rose at per day. 0.1% 16% 50% 100% In the classical model, it is thought that the long-run: and short-run aggregate supply curves are both upward sloping. aggregate supply curve is vertical and the short-run aggregate supply curve is upward sloping. and short-run aggregate supply curves are both vertical. aggregate supply curve is upward sloping and the short-run aggregate supply curve is vertical.

Explanation / Answer

33. C INFLATION TARGETING. THE AIM F CENTRAL BANK OVER HERE IS TO MAINTAIN PRICE STABILITY FOR LONG TERM GROWTH OF ECONOMY.

34. A AN INCREASE AND NO CHANGE. IN THE SHORT RUN DEMAND WILL INCREASE INCREASING OUTPUT AND IN THE LONG RUN IT MAR RESULT IN RECESSION.

35. C TRY TO KEEP INFLATION BETWEEN 0% AND 2% PER YEAR.

36. T HAD THE WORLDS HIGHEST INFLATION RATE. THE RTE WAS 231 MILLION PERCENT.

37. 50% PER DAY.

38. B AGGREGATE SUPPLY CURVE IS VERTICAL AND THE SHORT RUN AGGREGATE SUPPLY CURVE IS UPWARD SLOPING.

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