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Social Science
Economics
Quiz #8
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Central Bankers define Price Stability as
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Low and Stable inflation
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1 / 34
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Terms in this set (34)
Central Bankers define Price Stability as
Low and Stable inflation
A nominal anchor is a variable, such as the inflation rate or the money supply, which ties down the price level to achieve price stability. A nominal anchor can
limit the time-inconsistency problem
"Full Employment" equals
The natural rate of unemployment
A particular level of output that is produced at natural rare of unemployment is referred to as:
Natural Rate of Output and Potential Output
If a central bank were to place a priority on maximum employment over price stability that would be an example of
Hierarchical Mandates