Week 8 Flashcards
(8 cards)
1
Q
What is monetary policy?
A
2
Q
Inflation over the business cycle
A
3
Q
Expectations and the Phillips curve
A
4
Q
Stagflation
A
A condition of slow economic growth and relatively high unemployment – economic stagnation – accompanied by rising prices, or inflation, or inflation and a decline in Gross Domestic Product (GDP). Stagflation is an economic problem defined in equal parts by its rarity and by the lack of consensus among academics on how exactly it comes to pass.
5
Q
Nominal variables, such as money, cannot determine in the long run real variables such as _____ and _______.
A
output and unemployment
6
Q
How does the CB control the MP?
A
7
Q
Taylor Rule Equation
A
8
Q
A
