Exam 14: Macroeconomic Policy: Challenges in a Global Economy

(Figure: Understanding Phillips Curve Shifts) The graph shows two Phillips curves. Suppose the economy originally faced curve PC₁. Which of these would cause the curve to shift to PC₂?

(Multiple Choice)

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Question 121

Which of these was a change in banks' lending practices that contributed to a housing bubble?

(Multiple Choice)

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Question 122

The 2007-2009 recession was _____ the previous two recessions, in 1990 and 2001.

(Multiple Choice)

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Question 123

Adaptive expectations is a _-looking model, and rational expectations is a _-looking model.

(Multiple Choice)

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Question 124

According to the equation for the Phillips curve, there is a unique tradeoff between inflation and unemployment for each level of inflationary expectations.

(True/False)

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Question 125

One can understand the debt obligations stemming from health care and Social Security by looking at current deficit statistics.

(True/False)

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Question 126

If policymakers are successful at reducing inflationary expectations:

(Multiple Choice)

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Question 127

If inflation is 3% but wages rise by 5% and there are no additional inflationary expectations, what is the rate of increase in labor productivity?

(Multiple Choice)

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Question 128

(Figure: Policy Changes in the Short Run) To move the economy from point b to point a in the short run, Federal Reserve policymakers implement ___ monetary policy, thereby accepting _ to reduce ___.

(Multiple Choice)

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Question 129

Assume that nominal wages increase 10% and productivity increases 20%. Using the equation for the Phillips curve, inflation is:

(Multiple Choice)

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Question 130

Unemployment often keeps increasing after the economy begins to recover.

(True/False)

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Question 131

If wages are sticky, then monetary policy actions:

(Multiple Choice)

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Question 132

The possible consequences of using fiscal and monetary policies to reduce unemployment are higher debt and the risk of inflation.

(True/False)

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Question 133

According to the equation for the Phillips curve, if nominal wages increase by 3% and productivity increases 2%, then inflation will change by:

(Multiple Choice)

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Question 134

Which statement is NOT an effective criticism of rational expectations?

(Multiple Choice)

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Question 135

Imperfect information and efficiency wages together suggest that policy changes can have a short-term impact.

(True/False)

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Question 136

When inflationary expectations are added to the Phillips curve, the nonaccelerating inflation rate of unemployment is defined as the unemployment rate at which the:

(Multiple Choice)

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Question 137

The recession of 2007-2009 was:

(Multiple Choice)

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Question 138

The willingness of people around the world to use and hold U.S. dollars allows the U.S. government to increase the money supply without the immediate risk of inflation.

(True/False)

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Question 139

Which action was NOT taken in response to the financial crisis?

(Multiple Choice)

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Question 140

Showing 121 - 140 of 265

(Figure: Understanding Phillips Curve Shifts) The graph shows two Phillips curves. Suppose the economy originally faced curve PC₁. Which of these would cause the curve to shift to PC₂?

Which of these was a change in banks' lending practices that contributed to a housing bubble?

The 2007-2009 recession was _____ the previous two recessions, in 1990 and 2001.

Adaptive expectations is a _-looking model, and rational expectations is a _-looking model.

According to the equation for the Phillips curve, there is a unique tradeoff between inflation and unemployment for each level of inflationary expectations.

One can understand the debt obligations stemming from health care and Social Security by looking at current deficit statistics.

If policymakers are successful at reducing inflationary expectations:

If inflation is 3% but wages rise by 5% and there are no additional inflationary expectations, what is the rate of increase in labor productivity?

(Figure: Policy Changes in the Short Run) To move the economy from point b to point a in the short run, Federal Reserve policymakers implement ___ monetary policy, thereby accepting _ to reduce ___.

Assume that nominal wages increase 10% and productivity increases 20%. Using the equation for the Phillips curve, inflation is:

Unemployment often keeps increasing after the economy begins to recover.

If wages are sticky, then monetary policy actions:

The possible consequences of using fiscal and monetary policies to reduce unemployment are higher debt and the risk of inflation.

According to the equation for the Phillips curve, if nominal wages increase by 3% and productivity increases 2%, then inflation will change by:

Which statement is NOT an effective criticism of rational expectations?

Imperfect information and efficiency wages together suggest that policy changes can have a short-term impact.

When inflationary expectations are added to the Phillips curve, the nonaccelerating inflation rate of unemployment is defined as the unemployment rate at which the:

The recession of 2007-2009 was:

The willingness of people around the world to use and hold U.S. dollars allows the U.S. government to increase the money supply without the immediate risk of inflation.

Which action was NOT taken in response to the financial crisis?

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

(Figure: Understanding Phillips Curve Shifts) The graph shows two Phillips curves. Suppose the economy originally faced curve PC1. Which of these would cause the curve to shift to PC2?

Which of these was a change in banks' lending practices that contributed to a housing bubble?

The 2007-2009 recession was _____ the previous two recessions, in 1990 and 2001.

Adaptive expectations is a _____-looking model, and rational expectations is a _____-looking model.

According to the equation for the Phillips curve, there is a unique tradeoff between inflation and unemployment for each level of inflationary expectations.

One can understand the debt obligations stemming from health care and Social Security by looking at current deficit statistics.

If policymakers are successful at reducing inflationary expectations:

If inflation is 3% but wages rise by 5% and there are no additional inflationary expectations, what is the rate of increase in labor productivity?

(Figure: Policy Changes in the Short Run) To move the economy from point b to point a in the short run, Federal Reserve policymakers implement _____ monetary policy, thereby accepting _____ to reduce _____.

Assume that nominal wages increase 10% and productivity increases 20%. Using the equation for the Phillips curve, inflation is:

Unemployment often keeps increasing after the economy begins to recover.

If wages are sticky, then monetary policy actions:

The possible consequences of using fiscal and monetary policies to reduce unemployment are higher debt and the risk of inflation.

According to the equation for the Phillips curve, if nominal wages increase by 3% and productivity increases 2%, then inflation will change by:

Which statement is NOT an effective criticism of rational expectations?

Imperfect information and efficiency wages together suggest that policy changes can have a short-term impact.

When inflationary expectations are added to the Phillips curve, the nonaccelerating inflation rate of unemployment is defined as the unemployment rate at which the:

The recession of 2007-2009 was:

The willingness of people around the world to use and hold U.S. dollars allows the U.S. government to increase the money supply without the immediate risk of inflation.

Which action was NOT taken in response to the financial crisis?

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

(Figure: Understanding Phillips Curve Shifts) The graph shows two Phillips curves. Suppose the economy originally faced curve PC₁. Which of these would cause the curve to shift to PC₂?

Adaptive expectations is a _-looking model, and rational expectations is a _-looking model.

(Figure: Policy Changes in the Short Run) To move the economy from point b to point a in the short run, Federal Reserve policymakers implement ___ monetary policy, thereby accepting _ to reduce ___.