Exam 26: Money and Output in the Short Run

Suppose that neither output nor the money supply has been growing. 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 only 5%, the result will be that

According to New Keynesians, why does an expected change in the money supply affect output in the short run?

In the new Keynesian view a decline in consumer confidence that leads to a shift left in the AD curve

In 1992 the Central Bank of Japan resisted implementing an expansionary monetary policy because

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 more than 10%, the result will be

A recession begins, but Congress and the President take eighteen months to decide the details of the tax cut that will be used to stimulate the economy. This is an example of

The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is

In the new Keynesian view, monetary policy has its main effect on output through the impact of interest rate changes on aggregate demand. In the new Keynesian view, in which of the following countries would an increase in interest rates have the greatest effect on aggregate demand in the short run: (a) Slobovia, which has a large trade sector and where businesses and firms rely heavily on short-term borrowing; or (b) Outlandia, which has a small trade sector and where little use is made of short-term borrowing?

In the long run, one-time increases or decreases in the nominal money supply affect

Movements in the growth rate of the money supply are

Milton Friedman and Anna Schwartz found in their study of money and business cycles from the Civil War to 1960 that

Evaluate the following assertion: "The money supply always increases significantly a few weeks before Christmas. Therefore, the increase in the money supply must be causing Christmas to happen."

Which of the following schools of thought among economists believe that activist stabilization policy is ever desirable?

Followers of the new classical approach believe that for stabilization policies to be effective they must

When economists state that money is neutral in the long run, they mean that in the long run,

Findings by various researchers have shown that

Which of the following is true of the real business cycle approach to stabilization policy?

According to the new classical view, if Fed policy during the early 1980s had been more credible,

The economy begins to enter a recession, but it is several months before this is reflected in the statistics on GDP. This is an example of

According to the real business cycle model, the correlation between changes in the money supply and changes in output over the business cycle results from