Question 1

Conservatives claim that monetary policy should accommodate changes in inflation-adjusted GDP.

Accepted Answer

A) True 
 B)False  False

Question 2

Inflation is best defined as

Accepted Answer

A)  a sustained increase in the general level of prices. 
B)  the price level. 
C)  a decline in the general level of prices. 
D)  None of the above. 
A)  a sustained increase in the general level of prices. 
B)  the price level. 
C)  a decline in the general level of prices. 
D)  None of the above. A

Question 3

Germany's experience with hyperinflation was a contributing factor to the rise of Adolph Hitler and World War II.

Accepted Answer

A) True 
 B)False  True

Question 4

At the beginning and end of the nineteenth century, the retail price level in the United States

Accepted Answer

A)  increased. 
B)  decreased. 
C)  was about the same. 
D)  None of the above. 
A)  increased. 
B)  decreased. 
C)  was about the same. 
D)  None of the above.

Question 5

Liberals argue against the Conservative "monetarist" program to control inflation because

Accepted Answer

A)  the relationship between output, employment, and money supply growth is not stable and predictable. 
B)  a fixed money supply growth rule prevents government and monetary authorities from accommodating the vagaries of each business cycle. 
C)  structural factors such as technological change, global competition, and income inequality have restrained and/or depressed labor costs. 
D)  All of the above. 
A)  the relationship between output, employment, and money supply growth is not stable and predictable. 
B)  a fixed money supply growth rule prevents government and monetary authorities from accommodating the vagaries of each business cycle. 
C)  structural factors such as technological change, global competition, and income inequality have restrained and/or depressed labor costs. 
D)  All of the above.

Question 6

The demand-management policies of the 1960s achieved a lower inflation rate compared to the supply-side polices of the 1980s.

Accepted Answer

A) True 
 B)False

Question 7

Liberals argue that monetarist policies

Accepted Answer

A)  are the only way to deal with inflation. 
B)  cause high interest rates that hamper investment in the productive base of the economy. 
C)  are justified by the tight relationship between the money supply and GDP. 
D)  work better than fiscal policy. 
A)  are the only way to deal with inflation. 
B)  cause high interest rates that hamper investment in the productive base of the economy. 
C)  are justified by the tight relationship between the money supply and GDP. 
D)  work better than fiscal policy.

Question 8

Conservatives see deregulation as an important policy to reduce inflation.

Accepted Answer

A) True 
 B)False

Question 9

Radicals view long-term price stability as an important macroeconomic goal.

Accepted Answer

A) True 
 B)False

Question 10

Liberals maintain that the significant inflationary episodes of the 1970s and early 1980s were caused mostly by

Accepted Answer

A)  Keynesian policies. 
B)  policy neglect. 
C)  mismeasurement by the Consumer Price Index. 
D)  structural changes in the economy and random shocks. 
A)  Keynesian policies. 
B)  policy neglect. 
C)  mismeasurement by the Consumer Price Index. 
D)  structural changes in the economy and random shocks.

Question 11

The Taylor Rule states that short-term interest rates should be manipulated to achieve an acceptable balance between full employment and long-term inflation.

Accepted Answer

A) True 
 B)False

Question 12

Radicals favor abolishing the Federal Reserve Board.

Accepted Answer

A) True 
 B)False

Question 13

Conservatives favor

Accepted Answer

A)  establishing a rate of growth in the money supply that is fairly constant from year to year. 
B)  routinely manipulating taxes and government spending to stabilize the economy. 
C)  deficit spending. 
D)  focusing on unemployment rather than inflation in devising discretionary policies. 
A)  establishing a rate of growth in the money supply that is fairly constant from year to year. 
B)  routinely manipulating taxes and government spending to stabilize the economy. 
C)  deficit spending. 
D)  focusing on unemployment rather than inflation in devising discretionary policies.

Question 14

Conservatives argue that inflation is

Accepted Answer

A)  caused by too much money chasing too few goods. 
B)  a necessary feature of macroeconomy. 
C)  not associated with expansionary fiscal policies. 
D)  best controlled through frequent manipulation of the money supply. 
A)  caused by too much money chasing too few goods. 
B)  a necessary feature of macroeconomy. 
C)  not associated with expansionary fiscal policies. 
D)  best controlled through frequent manipulation of the money supply.

Question 15

According to the Liberal paradigm, "inflation is always and everywhere a monetary phenomena."

Accepted Answer

A) True 
 B)False

Question 16

Liberals believe that excessive labor union power was largely responsible for the high inflation of the late 1970s and early 1980s.

Accepted Answer

A) True 
 B)False

Question 17

Conservatives claim that inflation has historically been overstated, based on faulty computation procedures by the Bureau of Labor Statistics.

Accepted Answer

A) True 
 B)False

Question 18

Since the mid-1990s, the Federal Reserve has sought to maintain a relatively low rate of inflation by

Accepted Answer

A)  consistently raising short- and long-term interest rates. 
B)  restricting the amount of cash in bank vaults. 
C)  deregulating credit card companies. 
D)  generally accommodating the money and credit needs of the economy. 
A)  consistently raising short- and long-term interest rates. 
B)  restricting the amount of cash in bank vaults. 
C)  deregulating credit card companies. 
D)  generally accommodating the money and credit needs of the economy.

Question 19

Inflation hurts debtors more than creditors.

Accepted Answer

A) True 
 B)False

Question 20

During the 1970s, Republican presidents Richard Nixon and Gerald Ford and Democratic president Jimmy Carter all attempted to control inflation by

Accepted Answer

A)  deregulating most industries. 
B)  nationalizing large oil producers. 
C)  ending unemployment insurance. 
D)  using both voluntary and mandatory price controls. 
A)  deregulating most industries. 
B)  nationalizing large oil producers. 
C)  ending unemployment insurance. 
D)  using both voluntary and mandatory price controls.

Conservatives claim that monetary policy should accommodate changes in inflation-adjusted GDP.

Inflation is best defined as

Germany's experience with hyperinflation was a contributing factor to the rise of Adolph Hitler and World War II.

At the beginning and end of the nineteenth century, the retail price level in the United States

Liberals argue against the Conservative "monetarist" program to control inflation because

The demand-management policies of the 1960s achieved a lower inflation rate compared to the supply-side polices of the 1980s.

Liberals argue that monetarist policies

Conservatives see deregulation as an important policy to reduce inflation.

Radicals view long-term price stability as an important macroeconomic goal.

Liberals maintain that the significant inflationary episodes of the 1970s and early 1980s were caused mostly by

The Taylor Rule states that short-term interest rates should be manipulated to achieve an acceptable balance between full employment and long-term inflation.

Radicals favor abolishing the Federal Reserve Board.

Conservatives favor

Conservatives argue that inflation is

According to the Liberal paradigm, "inflation is always and everywhere a monetary phenomena."

Liberals believe that excessive labor union power was largely responsible for the high inflation of the late 1970s and early 1980s.

Conservatives claim that inflation has historically been overstated, based on faulty computation procedures by the Bureau of Labor Statistics.

Since the mid-1990s, the Federal Reserve has sought to maintain a relatively low rate of inflation by

Inflation hurts debtors more than creditors.

During the 1970s, Republican presidents Richard Nixon and Gerald Ford and Democratic president Jimmy Carter all attempted to control inflation by

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Imperfect Competition: Is Big Business a Threat or a Boon

Economic Regulation Which Path: Deregulation or Reregulation

Income Distribution: Does America Have an Income Inequality Problem

Financing Government: What Is a Fair System of Taxation

Macroeconomic Instability: Are We Depression-Proof

Economic Growth and Stability: Can We Maintain High and Steady Rates of Economic Growth

Balancing the Federal Budget: Should We Be Worried About the Rising Federal Deficit

Unemployment: Is Joblessness an Overrated Problem

The New Population Problem: Can We Save Our Social Security System

International Economics: Where Does America Fit Into the New World Order

Ideological Differences and Justifications for Planning in Economics

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Exam 12: Inflation: Can Price Pressures Be Kept Under Control

Conservatives claim that monetary policy should accommodate changes in inflation-adjusted GDP.

Inflation is best defined as

Germany's experience with hyperinflation was a contributing factor to the rise of Adolph Hitler and World War II.

At the beginning and end of the nineteenth century, the retail price level in the United States

Liberals argue against the Conservative "monetarist" program to control inflation because

The demand-management policies of the 1960s achieved a lower inflation rate compared to the supply-side polices of the 1980s.

Liberals argue that monetarist policies

Conservatives see deregulation as an important policy to reduce inflation.

Radicals view long-term price stability as an important macroeconomic goal.

Liberals maintain that the significant inflationary episodes of the 1970s and early 1980s were caused mostly by

The Taylor Rule states that short-term interest rates should be manipulated to achieve an acceptable balance between full employment and long-term inflation.

Radicals favor abolishing the Federal Reserve Board.

Conservatives favor

Conservatives argue that inflation is

According to the Liberal paradigm, "inflation is always and everywhere a monetary phenomena."

Liberals believe that excessive labor union power was largely responsible for the high inflation of the late 1970s and early 1980s.

Conservatives claim that inflation has historically been overstated, based on faulty computation procedures by the Bureau of Labor Statistics.

Since the mid-1990s, the Federal Reserve has sought to maintain a relatively low rate of inflation by

Inflation hurts debtors more than creditors.

During the 1970s, Republican presidents Richard Nixon and Gerald Ford and Democratic president Jimmy Carter all attempted to control inflation by

Responding to Market Outcomes: Competitionor Protection for American Agriculture

Consumer Welfare: Is It Necessary to Protect the Consumer

Dealing With Externalities: How Can We Save the Environment

Imperfect Competition: Is Big Business a Threat or a Boon

Economic Regulation Which Path: Deregulation or Reregulation

Income Distribution: Does America Have an Income Inequality Problem

Financing Government: What Is a Fair System of Taxation

Macroeconomic Instability: Are We Depression-Proof

Economic Growth and Stability: Can We Maintain High and Steady Rates of Economic Growth

Balancing the Federal Budget: Should We Be Worried About the Rising Federal Deficit

Unemployment: Is Joblessness an Overrated Problem

The New Population Problem: Can We Save Our Social Security System

International Economics: Where Does America Fit Into the New World Order

Ideological Differences and Justifications for Planning in Economics

Filters