Exam 34: Inflation, Deflation, and Macro Policy

Suppose a country has a velocity of money equal to 12 and nominal GDP of $30 billion.This means that each dollar in this economy is supporting approximately:

The long-run Phillips curve is:

In the equation of exchange, if the velocity of money is constant, a 10 percent increase in the money supply must:

In which case will adaptive, extrapolative and rational expectations predict the same inflation rate in the coming year?

Asset inflation is when:

If inflation is 3 percent last year and 2 percent this year an individual who follows extrapolative expectations, what is the inflation rate that the individual is likely to for the coming year?

Globalization in the past decade has led to a(n):

The last time the United States experienced hyperinflation was:

The short-run Phillips curve tells policy makers that if inflation is currently 6 percent and unemployment is 4 percent, measures to reduce the inflation rate to 4 percent will most likely lead to an unemployment rate of:

The short-run Phillips curve differs from the long-run Phillips curve with regard to the way:

Asset price inflation occurs when the prices of assets rise.

The effects of asset price inflation and asset price deflation generally:

Which of the following statements is consistent with the quantity theory of money?

Over the last twenty years, the United States had periods of considerable:

Unemployment rates above the target rate of unemployment lead to:

Refer to the graph shown.The relationship represented in the figure is called a:

If the velocity of money is increasing, but the money supply is not, it is likely the economy is experiencing:

If the velocity of money is about 1.8 and money stock is about $8 trillion, what is real GDP?

Expectations of inflation are assumed to be constant at each point on a given short-run Phillips curve.

M2 is $8 trillion and nominal GDP is about $14.2 trillion.What is the velocity of money?