Question 1

Monetary policy authorities can affect real interest rates

Accepted Answer

A) in the short run,but not in the long run. 
B) in the long run,but not in the short run. 
C) permanently. 
D) both in the long run and the short run. 
A) in the short run,but not in the long run. 
B) in the long run,but not in the short run. 
C) permanently. 
D) both in the long run and the short run.

Question 2

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of

Accepted Answer

A) the natural rate hypothesis. 
B) monetarism. 
C) the Phillips curve model. 
D) real business cycle theory. 
A) the natural rate hypothesis. 
B) monetarism. 
C) the Phillips curve model. 
D) real business cycle theory.

Question 3

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages ________ to prevent real wages from ________.

Accepted Answer

A) fall;rising 
B) fall;falling 
C) rise;falling 
D) rise;rising 
A) fall;rising 
B) fall;falling 
C) rise;falling 
D) rise;rising

Question 4

By analyzing aggregate demand through its component parts,we can conclude that,everything else held constant,a decline in the inflation rate causes

Accepted Answer

A) an increase in real interest rates,an increase in investment spending,and a decline in aggregate output demand. 
B) a decline in real interest rates,a decrease in investment spending,and an increase in aggregate output demand. 
C) a decline in real interest rates,an increase in investment spending,and an increase in aggregate output demand. 
D) an increase in real interest rates,a decline in investment spending,and a decline in aggregate output demand. 
A) an increase in real interest rates,an increase in investment spending,and a decline in aggregate output demand. 
B) a decline in real interest rates,a decrease in investment spending,and an increase in aggregate output demand. 
C) a decline in real interest rates,an increase in investment spending,and an increase in aggregate output demand. 
D) an increase in real interest rates,a decline in investment spending,and a decline in aggregate output demand.

Question 5

Which of the followings is NOT true about the word "autonomous" that economists use?

Accepted Answer

A) Changes in autonomous components are associated with movements along a curve. 
B) Changes in autonomous components are associated with shifts of a curve. 
C) The autonomous component of a variable is exogenous. 
D) The autonomous component of a variable is independent of other variables in the model. 
A) Changes in autonomous components are associated with movements along a curve. 
B) Changes in autonomous components are associated with shifts of a curve. 
C) The autonomous component of a variable is exogenous. 
D) The autonomous component of a variable is independent of other variables in the model.

Question 6

A permanent negative supply shock leads to ________ inflation ________.

Accepted Answer

A) higher;in both the short and long runs 
B) higher;in the short run but not in the long run 
C) lower;in both the short and long runs 
D) lower;in the short run but not in the long run 
A) higher;in both the short and long runs 
B) higher;in the short run but not in the long run 
C) lower;in both the short and long runs 
D) lower;in the short run but not in the long run

Question 7

Everything else held constant,an autonomous monetary policy easing ________ aggregate ________.

Accepted Answer

A) increases;demand 
B) decreases;demand 
C) decreases;supply 
D) increases;supply 
A) increases;demand 
B) decreases;demand 
C) decreases;supply 
D) increases;supply

Question 8

A decrease in the availability of raw materials that increases the price level is called a ________ shock

Accepted Answer

A) negative demand 
B) positive demand 
C) negative supply 
D) positive supply 
A) negative demand 
B) positive demand 
C) negative supply 
D) positive supply

Monetary policy authorities can affect real interest rates

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages to prevent real wages from .

By analyzing aggregate demand through its component parts,we can conclude that,everything else held constant,a decline in the inflation rate causes

Which of the followings is NOT true about the word "autonomous" that economists use?

A permanent negative supply shock leads to inflation .

Everything else held constant,an autonomous monetary policy easing aggregate .

A decrease in the availability of raw materials that increases the price level is called a ________ shock

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

The Meaning of Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Financial Crises

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Financial Crises in Emerging Market Economies

The ISLM Model

Filters

Exam 22: Aggregate Demand and Supply Analysis

Monetary policy authorities can affect real interest rates

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages ________ to prevent real wages from ________.

By analyzing aggregate demand through its component parts,we can conclude that,everything else held constant,a decline in the inflation rate causes

Which of the followings is NOT true about the word "autonomous" that economists use?

A permanent negative supply shock leads to ________ inflation ________.

Everything else held constant,an autonomous monetary policy easing ________ aggregate ________.

A decrease in the availability of raw materials that increases the price level is called a ________ shock

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

The Meaning of Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Financial Crises

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Financial Crises in Emerging Market Economies

The ISLM Model

Filters

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages to prevent real wages from .

A permanent negative supply shock leads to inflation .

Everything else held constant,an autonomous monetary policy easing aggregate .