Question

Many central banks use ___________ in which they adjust monetary policy to hit a specific rate...

Many central banks use ___________ in which they adjust monetary policy to hit a specific rate of change in the price level.

Question 15 options:

inflation targeting

a dual mandate

fiscal policy

monetary policy

If a country has the following labor force values, match the values with the appropriate statistic:

Statistic Value
Total Working Age Population 5,600,000
Labor Force 2,900,000
Employed 2,500,000

Question 19 options:

1234

Employment rate

1234

Unemployed

1234

Labor force participation rate

1234

Unemployment rate

1.

400,000

2.

51.8%

3.

13.8%

4.

44.6%

Homework Answers

Answer #1

1 - Option D

Monetary policy.

This policy is used by the central banks to adjust the money supply in economy and maintain the stable price level. Inflation targetting takes place when inflation rate has to be maintained. Fiscal policy is implemented by government and not central bank. Hence option D will be correct.

2 - Employment rate = 2500000/5600000*100

= 44.6 %

Unemployed = 2900000-2500000

= 400000

Labor force participation rate = 2900000/5600000*100

= 51.8 %

Unemployment rate = 400000/2900000*100

= 13.8%

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