Exam 14: Macroeconomic Policy

If the rate of inflation equals zero then the nominal rate of interest:

Someone who is not strongly committed to achieving and maintaining low inflation is called a(n):

The time between when the fed funds rate is cut and when investment spending increases is an example of:

The inside lag of macroeconomic policy is the:

Someone who is committed to maintaining low inflation even at the short-run cost of reduced output and employment is called a(n):

People's expectations of future inflation that do not change even if inflation rises temporarily are called _____ inflationary expectations.

The greater the credibility of monetary policy, the ____ likely inflationary expectations are to be anchored and the _____ the recessions caused by adverse inflation shocks.

An inflation dove is someone who:

If the professional opinions of economists regarding the natural rate of unemployment vary between 4.5 and 6 percent, then when the actual rate of unemployment equals 5 percent:

To accommodate an adverse inflation shock the Fed must ____, while to offset the effect of an increase in aggregate demand the Fed must _____.

The delay between the date a policy change is needed and the date it is implemented is called the:

The delay between the date a policy change is implemented and the date when most of its effects have occurred in the economy is called the:

The outside lag of macroeconomic policy is the:

Suppose last year Moe faced a 25% marginal tax rate.This year tax rates have increased and now Moe faces a 30% marginal tax rate.Moe may choose to work more hours this year because:

Reduced macroeconomic variability in the U.S.since 1981 has all of the following benefits except:

If the inflation rate equals zero, then a worker's real wage will fall when:

A supply-side policy is a policy that:

Which of the following characteristics of a central bank is expected to enhance monetary policy credibility?

The Fed cannot achieve a negative real interest rate if the inflation rate is zero or negative because:

All of the following are examples of U.S.Federal Reserve System independence except that: