Question 1

Which of the following graphs correctly represents the effect on the Phillips curve in India if the Indian rupee depreciates?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 2

In the IS-MP analysis in the Fed model, expansionary fiscal policy will shift the:

Accepted Answer

A) IS curve to the left. 
B) IS curve to the right. 
C) MP curve up. 
D) MP curve down. 
A) IS curve to the left. 
B) IS curve to the right. 
C) MP curve up. 
D) MP curve down.

Question 3

Classify the following as a financial shock, a spending shock, or a supply shock.
(a) Holding everything else equal, a cost-efficient robotic distribution method is adopted by many industries.
(b) Due to decreased profitability forecasts, businesses reduce investment.
(c) The U.S. dollar appreciates.
(d) The Federal Reserve intervenes in financial markets to lower the risk premium.

Accepted Answer

The answer of Classify the following as a financial shock,...

Question 4

The economy shown here begins at a 0% output gap. Now suppose that consumers fear a recession and reduce their spending. This leads to:

Accepted Answer

A) unexpected inflation of 0%. 
B) unexpected inflation of -1%. 
C) a new output gap of 2%. 
D) a new real interest rate of 3%. 
A) unexpected inflation of 0%. 
B) unexpected inflation of -1%. 
C) a new output gap of 2%. 
D) a new real interest rate of 3%.

Question 5

The economy shown here begins at a 0% output gap. Now suppose that manufacturers in China face rising costs of rubber as an input. Based on the figure shown, if expected inflation was 2%, the actual inflation will be:

Accepted Answer

A) 3%. 
B) 1%. 
C) 0%. 
D) -1%. 
A) 3%. 
B) 1%. 
C) 0%. 
D) -1%.

Which of the following graphs correctly represents the effect on the Phillips curve in India if the Indian rupee depreciates?

In the IS-MP analysis in the Fed model, expansionary fiscal policy will shift the:

The economy shown here begins at a 0% output gap. Now suppose that consumers fear a recession and reduce their spending. This leads to:

The economy shown here begins at a 0% output gap. Now suppose that manufacturers in China face rising costs of rubber as an input. Based on the figure shown, if expected inflation was 2%, the actual inflation will be:

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

Elasticity: Measuring Responsiveness

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Entry, Exit, and Long-Run Profitability

Business Strategy

Sophisticated Pricing Strategies

Game Theory and Strategic Choices

Decisions Involving Uncertainty

Decisions With Private Information

Sizing up the Economy Using Gdp

Economic Growth

Unemployment

Inflation and Money

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

Filters

Exam 32: The Fed Model: Linking Interest Rates, Output, and Inflation

Which of the following graphs correctly represents the effect on the Phillips curve in India if the Indian rupee depreciates?

In the IS-MP analysis in the Fed model, expansionary fiscal policy will shift the:

The economy shown here begins at a 0% output gap. Now suppose that consumers fear a recession and reduce their spending. This leads to:

The economy shown here begins at a 0% output gap. Now suppose that manufacturers in China face rising costs of rubber as an input. Based on the figure shown, if expected inflation was 2%, the actual inflation will be:

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

Elasticity: Measuring Responsiveness

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Entry, Exit, and Long-Run Profitability

Business Strategy

Sophisticated Pricing Strategies

Game Theory and Strategic Choices

Decisions Involving Uncertainty

Decisions With Private Information

Sizing up the Economy Using Gdp

Economic Growth

Unemployment

Inflation and Money

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

Filters