Exam 18: Monetary Policy Learning Objectives

Explain the difference between active monetary policy and passive monetary policy, commenting on the Federal Reserve's use of monetary policy since the early 1980s.

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Question 1

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Active monetary policy involves the strategic use of monetary policy to counteract macroeconomic expansions and contractions. In the 1960s, before the development of expectations theory, monetary policy prescriptions were strictly activist: stimulate inflation during economic downturns, and reduce inflation when the economy is booming. Passive monetary policy occurs when central banks purposefully choose to only stabilize money and price levels through monetary policy. In particular, passive policy does not seek to use inflation to affect real variables like unemployment and real gross domestic product GDP). In the United States, the Federal Reserve has moved markedly in this direction since the early 1980s.

What will economists today likely state should have been done to limit the severity of the Great Depression?

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Question 2

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Between 1929 and 1933, what triggered a major contraction in the money supply?

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Question 3

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When inflation is expected, the real effect on the economy is

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Question 4

The Federal Reserve actively worked to keep the federal funds rate at nearly ________ percent for several years following the Great Recession.

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Question 5

Which two economic conditions challenged assumptions of activist monetary policy in the 1970s?

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Question 6

Refer to the following figure to answer the next questions. -According to the figure, if an expansionary monetary policy is fully expected, that policy will cause an economy initially in full-employment equilibrium to see real gross domestic product GDP)

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Question 7

Contractionary monetary policy makes the aggregate demand curve

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Question 8

Explain the difference between expansionary monetary policy and contractionary monetary policy.

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Question 9

Expansionary monetary policy

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Question 10

A the short-run aggregate supply curve is shown as a the long-run Phillips curve

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Question 11

The first press conference held by a Federal Reserve chairman to specifically talk about the Fed's policy-making committee was held in which year?

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Question 12

In the short run, expansionary monetary policy real gross domestic product (GDP), unemployment, and the price level.

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Question 13

Explain the difference between "real" and "nominal" effects of monetary policy and its effect on the economy.

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Question 14

Contractionary monetary policy interest rates, causing to shift to the .

(Multiple Choice)

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Question 15

The theory behind the short-run Phillips curve relationship is that

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Question 16

What can be concluded from the chart below which shows inflation versus unemployment rates from 1948 to 2015)?

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Question 17

Federal Reserve chairman Ben Bernanke's move toward greater openness in the 2010s reflected which view of macroeconomics?

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Question 18

From 1982 to 2008, the economy experienced only two recessions, and they were neither lengthy nor severe. This time period is known as the

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Question 19

As the prices of goods and services increase, the value of money

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Question 20

Showing 1 - 20 of 169

Explain the difference between active monetary policy and passive monetary policy, commenting on the Federal Reserve's use of monetary policy since the early 1980s.

What will economists today likely state should have been done to limit the severity of the Great Depression?

Between 1929 and 1933, what triggered a major contraction in the money supply?

When inflation is expected, the real effect on the economy is

The Federal Reserve actively worked to keep the federal funds rate at nearly ________ percent for several years following the Great Recession.

Which two economic conditions challenged assumptions of activist monetary policy in the 1970s?

Refer to the following figure to answer the next questions. -According to the figure, if an expansionary monetary policy is fully expected, that policy will cause an economy initially in full-employment equilibrium to see real gross domestic product GDP)

Contractionary monetary policy makes the aggregate demand curve

Explain the difference between expansionary monetary policy and contractionary monetary policy.

Expansionary monetary policy

A the short-run aggregate supply curve is shown as a the long-run Phillips curve

The first press conference held by a Federal Reserve chairman to specifically talk about the Fed's policy-making committee was held in which year?

In the short run, expansionary monetary policy real gross domestic product (GDP), unemployment, and the price level.

Explain the difference between "real" and "nominal" effects of monetary policy and its effect on the economy.

Contractionary monetary policy interest rates, causing to shift to the .

The theory behind the short-run Phillips curve relationship is that

What can be concluded from the chart below which shows inflation versus unemployment rates from 1948 to 2015)?

Federal Reserve chairman Ben Bernanke's move toward greater openness in the 2010s reflected which view of macroeconomics?

From 1982 to 2008, the economy experienced only two recessions, and they were neither lengthy nor severe. This time period is known as the

As the prices of goods and services increase, the value of money

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

International Trade

International Finance

Filters

Exam 18: Monetary Policy Learning Objectives

Explain the difference between active monetary policy and passive monetary policy, commenting on the Federal Reserve's use of monetary policy since the early 1980s.

What will economists today likely state should have been done to limit the severity of the Great Depression?

Between 1929 and 1933, what triggered a major contraction in the money supply?

When inflation is expected, the real effect on the economy is

The Federal Reserve actively worked to keep the federal funds rate at nearly ________ percent for several years following the Great Recession.

Which two economic conditions challenged assumptions of activist monetary policy in the 1970s?

Refer to the following figure to answer the next questions. -According to the figure, if an expansionary monetary policy is fully expected, that policy will cause an economy initially in full-employment equilibrium to see real gross domestic product GDP)

Contractionary monetary policy makes the aggregate demand curve

Explain the difference between expansionary monetary policy and contractionary monetary policy.

Expansionary monetary policy

A ________ the short-run aggregate supply curve is shown as a ________ the long-run Phillips curve

The first press conference held by a Federal Reserve chairman to specifically talk about the Fed's policy-making committee was held in which year?

In the short run, expansionary monetary policy ________ real gross domestic product (GDP), ________ unemployment, and ________ the price level.

Explain the difference between "real" and "nominal" effects of monetary policy and its effect on the economy.

Contractionary monetary policy ________ interest rates, causing ________ to shift to the ________.

The theory behind the short-run Phillips curve relationship is that

What can be concluded from the chart below which shows inflation versus unemployment rates from 1948 to 2015)?

Federal Reserve chairman Ben Bernanke's move toward greater openness in the 2010s reflected which view of macroeconomics?

From 1982 to 2008, the economy experienced only two recessions, and they were neither lengthy nor severe. This time period is known as the

As the prices of goods and services increase, the value of money

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

International Trade

International Finance

Filters

A the short-run aggregate supply curve is shown as a the long-run Phillips curve

In the short run, expansionary monetary policy real gross domestic product (GDP), unemployment, and the price level.

Contractionary monetary policy interest rates, causing to shift to the .