Exam 26: Money and Output in the Short Run

In keeping with the New Keynesian model, the European Central Bank

Which of the following schools of thought among economists believe that expected changes in the money supply can affect output in the short run?

Which of the following is a correct characterization of the views of economists on the relation between changes in the money supply and changes in output in the short run?

According to the new Keynesian approach output fell during the early 1990s because

Periods of contraction in the business cycle are known as

According to the new Keynesian view, upturns and downturns in economic activity

In terms of the AD-AS model, the new classical approach indicates that an unexpected decrease in the money supply will affect output because it will cause

According to the real business cycle model,

In the new Keynesian approach, an increase in the nominal money supply

Ben Bernanke and Alan Blinder were able to document that

Which of the following is true of the new classical view of stabilization policy?

In the new classical view, firms and workers

Ben Bernanke and Alan Blinder found evidence that money is

The Fed decides to stimulate the economy by driving down the real interest rate. Months pass, however, before new factories and houses begin to be built in response. This is an example of

Which school of thought believes that the Fed should seek to reduce inflation in a major, one-shot policy shift that's announced and credible?

Which of the following statements concerning stabilization policy is correct?

Business cycles typically last

In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by 10%, the result will be

In the new Keynesian approach, an increase in the nominal money supply affects output by

An expansionary monetary policy that successfully counteracts a recession has the side effect of