Exam 10: Classical Business Cycle Analysis

If the money supply grows 7% during the year,and people expected the money supply to grow by 5%,what happens to the short-run aggregate supply curve,according to the misperceptions theory?

The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that

The most common measure of productivity shocks is known as

The basic classical model can account for the procyclical behavior of money if there

Assuming that money is neutral,an increase in the nominal money supply would cause

In the classical model,a temporary increase in government purchases causes the new equilibrium to have

A temporary decrease in government purchases in the classical model would

Analyze the short-run and long-run effects of an unanticipated decrease in the money supply in the misperceptions model.Tell what happens to output,the price level,and the expected price level in both the short run and long run.

How do RBC theorists answer the objection that there have been few examples of large and easily measurable real shocks to the U.S.economy in recent decades?

The Solow residual is

Research on productivity shocks has shown that

How is the Solow residual measured? What problems arise in its measurement when resource utilization varies over the business cycle? What implications do these measurement issues have for evidence supporting the RBC model?

Which of the following is not a primary cause of business cycle fluctuations,according to real business cycle theory?

Which of the following would not be an example of a productivity shock?

If producers believe that the increase in their relative prices is small relative to the increase in the general price level,then the slope of the short-run aggregate supply curve will be

Prescott's calibrated RBC model was able to match the data in terms of the ________ between many key macroeconomic variables and GNP; that is,in terms of how closely they moved with GNP over the business cycle.

DSGE models are

If you expect a general price increase of 5% this year and the price of the hamburgers you sell increases by 10%,you would conclude that the relative price of your good has

When RBC economists compare the volatility in their models to the data,what are they looking at?

If the utilization rates of capital and labor are procyclical,then