Exam 14: The Goals, tools, and Rules of Monetary Policy

Which of the following changes should make activist policy makers more confident in their capacity to make good policy recommendations?

The Fed's interest rate response to the rising output ratio experienced from 1997 to 1999 is explained by

To be successful in stabilizing AD,the application of a constant growth-rate rule for the money supply requires

Gordon believes that the expansion which began in 1982 did so because of the

Non-activists believe that the principal source of AD instability is

Which of the following caused pre-1984 volatility in residential construction?

A believer in the need for a CGRR of the money supply policy must be ________ about the ability of the private economy to self-stabilize and ________ about the accuracy of discretionary stabilization policy.

Some people support the Euro in hopes that the European Central Bank will emulate the monetary policy of the central bank of

The activists' paradise requires

Policy activists' hope that they can undertake successful stabilization policy is ________ by the fact that natural real GDP ________ during recessions.

The "time inconsistency" argument is that a downward shift of the short-run Phillips Curve,which comes about with a ________ of inflationary expectations,is more likely when monetary policy ________.

During the ________ output tended to exceed its natural level and inflation ________.

Which of these policy rule variables does NOT have the disadvantage of being hard to control?

Monetary policy has one clear advantage over fiscal policy by virtue of its very short

Which of the following types of economic data are revised over time as government data collection agencies receive more complete information?

Which of the following is NOT an argument of non-activists?

Draw two SP curves intersecting LP;call the upper intersection point A and the lower point B.The Fed promises to reduce inflation while maintaining natural unemployment.If the public believes the Fed,the economy moves from ________.Then if the Fed turns out to be time-inconsistent,breaking its promise and trading off ________ inflation for lower unemployment,the public revises the way it forms inflation expectations so that in the long run the economy stays at ________.

When existing stocks of resources are being heavily utilized,actual output is

If the demand for money is relatively stable,

Among the prospective rules that set target variables directly,only the nominal GDP rule