The central bank of a nation is mandated to maintain the annual rate of inflation at 2.5%. The government instructs the central bank that deviations above this target are considered just as undesirable as deviations below this target.
What is this an example of?
An asymmetric inflation target
A symmetric inflation target
A conflict between macroeconomic policy objectives
An indexation of monetary policy instruments
77 exam-style questions on OCR A Level Economics Inflation. Each one has a worked solution and a mark scheme showing where the marks go.