To reduce economic volatility the Fed should push the economy toward a
A)positive output ratio.
B)negative output ratio.
C)zero output ratio.
D)All of the above are consistent with reduced volatility.

Question

Quizplus · Accepted Answer

A zero output ratio indicates that the economy is producing at its potential output level, which is associated with stable economic conditions and reduced volatility.

To Reduce Economic Volatility the Fed Should Push the Economy