A rule that has been suggested to compensate for unexpected changes in velocity is a(n):
A) real GDP rule.
B) nominal GDP rule.
C) constant money growth rule.
D) inflation targeting rule.

Question

Quizplus · Accepted Answer

A nominal GDP rule suggests adjusting monetary policy based on changes in the nominal GDP, which includes both the real output (real GDP) and the price level (inflation). This approach compensates for unexpected changes in velocity by targeting a stable growth in nominal GDP, which inherently adjusts for both real economic growth and inflation.

A Rule That Has Been Suggested to Compensate for Unexpected