Exam 22:Understanding Business Cycle Fluctuations

Most economists attribute the Great Moderation experienced in the United States during the 1990s mainly to:

Central bankers with a relatively steep monetary policy reaction curve will:

Negative supply shocks cause shifts in:

Without a change in target inflation, anything that shifts the aggregate demand curve to the right will cause:

Monetary policymakers face a tradeoff between:

Since 1950, the U.S. economy has likely experienced:

Use the long-run model to describe the adjustment process the economy would go through from an increase in potential output.

Fiscal policy suffers from the problem of:

The 2008 and 2009 tax cuts and the increase in government spending that occurred at the same time did not have the same inflationary impact as the similar policy in the 1960s because:

In 2001 a combination of tax cuts and increased defense spending did not have the same inflationary effect as the similar policy in the 1960s. Explain the difference.

Permanent declines in inflation such as those seen in Chile and Sweden must have been a result of:

Explain why real business cycle theory renders the short-run aggregate supply curve irrelevant.

Which of the following would shift the short-run aggregate supply curve to the right?

A "shock" is something that creates a shift in:

Globalization and trade:

When faced with negative supply shocks, policymakers:

Does an increase in the rate of inflation always imply that aggregate demand is increasing? Explain.

In an economy like the United States, the impact of a decrease in import prices on overall inflation can be best described as:

The dynamic aggregate demand curve shifts as a result of:

Increases in potential output shift: