Question 1

Any action that reduces the public's perception of the rate of future inflation will shift the Phillips curve to the left.

Accepted Answer

A) True 
 B)False

Question 2

As the economy recovers, the Federal Reserve will wind down its bond purchases, causing interest rates to fall.

Accepted Answer

A) True 
 B)False

Question 3

An efficiency wage is:

Accepted Answer

A)  equal to the market-clearing level. 
B)  above the market-clearing level. 
C)  below the market-clearing level. 
D)  equal to marginal productivity of labor. 
A)  equal to the market-clearing level. 
B)  above the market-clearing level. 
C)  below the market-clearing level. 
D)  equal to marginal productivity of labor.

Question 4

Both _____ on credit by households and _____ interest rates set in motion the events that led to the 2007-2009 financial crisis.

Accepted Answer

A)  overspending; high 
B)  underspending; high 
C)  underspending; low 
D)  overspending; low 
A)  overspending; high 
B)  underspending; high 
C)  underspending; low 
D)  overspending; low

Question 5

According to the Phillips curve analysis, the way to solve inflation is to _____ unemployment or _____.

Accepted Answer

A)  increase; increase productivity 
B)  increase; decrease productivity 
C)  decrease; increase the money supply 
D)  increase; increase the money supply 
A)  increase; increase productivity 
B)  increase; decrease productivity 
C)  decrease; increase the money supply 
D)  increase; increase the money supply

Any action that reduces the public's perception of the rate of future inflation will shift the Phillips curve to the left.

As the economy recovers, the Federal Reserve will wind down its bond purchases, causing interest rates to fall.

An efficiency wage is:

Both _ on credit by households and _ interest rates set in motion the events that led to the 2007-2009 financial crisis.

According to the Phillips curve analysis, the way to solve inflation is to _ unemployment or _.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

International Trade

Open Economy Macroeconomics

Filters

Exam 14: Macroeconomic Policy: Challenges in a Global Economy

Any action that reduces the public's perception of the rate of future inflation will shift the Phillips curve to the left.

As the economy recovers, the Federal Reserve will wind down its bond purchases, causing interest rates to fall.

An efficiency wage is:

Both _____ on credit by households and _____ interest rates set in motion the events that led to the 2007-2009 financial crisis.

According to the Phillips curve analysis, the way to solve inflation is to _____ unemployment or _____.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

International Trade

Open Economy Macroeconomics

Filters

Both _ on credit by households and _ interest rates set in motion the events that led to the 2007-2009 financial crisis.

According to the Phillips curve analysis, the way to solve inflation is to _ unemployment or _.