Question 1

Why is Chile an example of successful macroeconomic policy? What measures has Chile taken to garner this success?

Accepted Answer

Chile is considered an example of succes

Question 2

How can a commodity boom have negative macroeconomic consequences?

Accepted Answer

A)  increased employment 
B)  increased government tax revenue 
C)  increased profits 
D)  rising price level 
E)  none of the above 
A)  increased employment 
B)  increased government tax revenue 
C)  increased profits 
D)  rising price level 
E)  none of the above

Question 3

Which international institution was formed to influence low oil prices?

Accepted Answer

A)  OPEC 
B)  the World Bank 
C)  the IMF 
D)  Inter-American development bank 
E)  none of the above 
A)  OPEC 
B)  the World Bank 
C)  the IMF 
D)  Inter-American development bank 
E)  none of the above

Question 4

Show how a major devaluation of the Mexican peso would change the price level and real GDP.

Accepted Answer

A major devaluation of the Mexican peso

Question 5

During the 1980s:

Accepted Answer

A)  AD fell. 
B)  SRAS shifted to the right. 
C)  AD rose. 
D)  a and b 
E)  b and c 
A)  AD fell. 
B)  SRAS shifted to the right. 
C)  AD rose. 
D)  a and b 
E)  b and c

Question 6

Price instability of commodities is due to:

Accepted Answer

A)  inelastic supply 
B)  inelastic demand 
C)  elastic supply 
D)  elastic demand 
E)  both a and b 
A)  inelastic supply 
B)  inelastic demand 
C)  elastic supply 
D)  elastic demand 
E)  both a and b

Question 7

Long run price stability is obtained when the money supply grows approximately as fast as:

Accepted Answer

A)  V 
B)  Q 
C)  r 
D)  R 
E)  B 
A)  V 
B)  Q 
C)  r 
D)  R 
E)  B

Question 8

The recovery from the Lost Decade occurred during the:

Accepted Answer

A)  1960s. 
B)  1970s. 
C)  1980s. 
D)  1990s. 
E)  2000s. 
A)  1960s. 
B)  1970s. 
C)  1980s. 
D)  1990s. 
E)  2000s.

Question 9

The macroeconomic effect of an oil shock is to shift the _____ curve to the _____.

Accepted Answer

A)  AD, right 
B)  AD, left 
C)  SRAS, right 
D)  SRAS, left 
E)  none of the above 
A)  AD, right 
B)  AD, left 
C)  SRAS, right 
D)  SRAS, left 
E)  none of the above

Question 10

Draw a graph and describe how long-run price stability is related to changes in AD and LRAS.

Accepted Answer

To illustrate the relationship between l

Question 11

Which of these is a policy designed to lower/restrain aggregate demand?

Accepted Answer

A)  lower taxes 
B)  increased government spending 
C)  increased protective tariffs 
D)  decreased government spending 
E)  none of the above 
A)  lower taxes 
B)  increased government spending 
C)  increased protective tariffs 
D)  decreased government spending 
E)  none of the above

Question 12

During the 1970s and 1980s, which international institution was the main source of foreign exchange to Latin America?

Accepted Answer

A)  the World Bank 
B)  the Inter-American development bank 
C)  the CIA 
D)  the IMF 
E)  none of the above 
A)  the World Bank 
B)  the Inter-American development bank 
C)  the CIA 
D)  the IMF 
E)  none of the above

Question 13

If a social preference for low inflation is strong, then the optimal policy response to oil shocks might be reducing ____ to keep the price level _____.

Accepted Answer

A)  AD, constant 
B)  AD, increasing 
C)  SRAS, constant 
D)  SRAS, increasing 
E)  none of the above 
A)  AD, constant 
B)  AD, increasing 
C)  SRAS, constant 
D)  SRAS, increasing 
E)  none of the above

Question 14

Oil prices rose dramatically in the:

Accepted Answer

A)  1950s. 
B)  1960s. 
C)  1970s. 
D)  1980s. 
E)  none of the above 
A)  1950s. 
B)  1960s. 
C)  1970s. 
D)  1980s. 
E)  none of the above

Question 15

Which of the following is a source of macroeconomic instability?

Accepted Answer

A)  commodity price shocks 
B)  oil shocks 
C)  exchange rate shocks 
D)  debt shocks 
E)  all of the above 
A)  commodity price shocks 
B)  oil shocks 
C)  exchange rate shocks 
D)  debt shocks 
E)  all of the above

Question 16

In the not so distant future, Country Z in Latin America is very likely to experience and exchange rate shock. Show and describe what happens to inflation in GDP after this happens.

Accepted Answer

In the not so distant future, Country Z

Question 17

Describe the history of macroeconomic instability in Brazil.

Accepted Answer

The history of macroeconomic instability

Question 18

What does the J-curve work to explain? What is the rationale behind this explanation?

Accepted Answer

The J-curve is a concept used in economi

Question 19

The tendency for the trade balance to deteriorate in the short run following a depreciation of the exchange rate is known as:

Accepted Answer

A)  exchange rate shock 
B)  J-curve 
C)  K-curve 
D)  commodity price shock 
E)  none of the above 
A)  exchange rate shock 
B)  J-curve 
C)  K-curve 
D)  commodity price shock 
E)  none of the above

Question 20

The Cruzado Plan is associated with which country?

Accepted Answer

A)  Mexico 
B)  Argentina 
C)  Chile 
D)  Brazil 
E)  El Salvador 
A)  Mexico 
B)  Argentina 
C)  Chile 
D)  Brazil 
E)  El Salvador

Why is Chile an example of successful macroeconomic policy? What measures has Chile taken to garner this success?

How can a commodity boom have negative macroeconomic consequences?

Which international institution was formed to influence low oil prices?

Show how a major devaluation of the Mexican peso would change the price level and real GDP.

During the 1980s:

Price instability of commodities is due to:

Long run price stability is obtained when the money supply grows approximately as fast as:

The recovery from the Lost Decade occurred during the:

The macroeconomic effect of an oil shock is to shift the _ curve to the _.

Draw a graph and describe how long-run price stability is related to changes in AD and LRAS.

Which of these is a policy designed to lower/restrain aggregate demand?

During the 1970s and 1980s, which international institution was the main source of foreign exchange to Latin America?

If a social preference for low inflation is strong, then the optimal policy response to oil shocks might be reducing to keep the price level _.

Oil prices rose dramatically in the:

Which of the following is a source of macroeconomic instability?

In the not so distant future, Country Z in Latin America is very likely to experience and exchange rate shock. Show and describe what happens to inflation in GDP after this happens.

Describe the history of macroeconomic instability in Brazil.

What does the J-curve work to explain? What is the rationale behind this explanation?

The tendency for the trade balance to deteriorate in the short run following a depreciation of the exchange rate is known as:

The Cruzado Plan is associated with which country?

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Import Substitution in Latin America

Latin American Trade Policy

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Poverty Inequality

Economic Policy Debates in Latin America

Filters

Exam 11: Macroeconomic Stability

Why is Chile an example of successful macroeconomic policy? What measures has Chile taken to garner this success?

How can a commodity boom have negative macroeconomic consequences?

Which international institution was formed to influence low oil prices?

Show how a major devaluation of the Mexican peso would change the price level and real GDP.

During the 1980s:

Price instability of commodities is due to:

Long run price stability is obtained when the money supply grows approximately as fast as:

The recovery from the Lost Decade occurred during the:

The macroeconomic effect of an oil shock is to shift the _____ curve to the _____.

Draw a graph and describe how long-run price stability is related to changes in AD and LRAS.

Which of these is a policy designed to lower/restrain aggregate demand?

During the 1970s and 1980s, which international institution was the main source of foreign exchange to Latin America?

If a social preference for low inflation is strong, then the optimal policy response to oil shocks might be reducing ____ to keep the price level _____.

Oil prices rose dramatically in the:

Which of the following is a source of macroeconomic instability?

In the not so distant future, Country Z in Latin America is very likely to experience and exchange rate shock. Show and describe what happens to inflation in GDP after this happens.

Describe the history of macroeconomic instability in Brazil.

What does the J-curve work to explain? What is the rationale behind this explanation?

The tendency for the trade balance to deteriorate in the short run following a depreciation of the exchange rate is known as:

The Cruzado Plan is associated with which country?

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Import Substitution in Latin America

Latin American Trade Policy

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Poverty Inequality

Economic Policy Debates in Latin America

Filters

The macroeconomic effect of an oil shock is to shift the _ curve to the _.

If a social preference for low inflation is strong, then the optimal policy response to oil shocks might be reducing to keep the price level _.