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

Question

Quizplus · Accepted Answer

The Federal Reserve uses the core PCE deflator inflation rate to monitor stable prices and the output gap to assess maximum employment.

To Determine Whether the Goal of Stable Prices Is Being