In the FOMC's "Statement on Long-Run Goals and Monetary Policy Strategy,"the FOMC agreed to a single numerical value of the inflation objective,2% on the ________.
A)PCE deflator
B)GDP deflator
C)CPI
D)PPI

Question

Quizplus · Accepted Answer

The FOMC agreed to a single numerical value of 2% on the Personal Consumption Expenditures (PCE) deflator, which is the preferred measure of inflation for the Federal Reserve. The GDP deflator, CPI, and PPI are not used as the primary measures of inflation by the Federal Reserve.