Question 1

When drawn against the real interest rate,the output demand curve shifts to the right when

Accepted Answer

A)  future income increases. 
B)  future taxes increase. 
C)  the real interest rate decreases. 
D)  both future and current taxes increase. 
E)  the real interest rate increases. 
A)  future income increases. 
B)  future taxes increase. 
C)  the real interest rate decreases. 
D)  both future and current taxes increase. 
E)  the real interest rate increases.

Question 2

The condition   = w' describes the representative consumer's

Accepted Answer

A)  investment decision. 
B)  current consumption-savings decision. 
C)  current period work-leisure decision. 
D)  future period work-leisure decision. 
E)  future consumption-savings decision. 
A)  investment decision. 
B)  current consumption-savings decision. 
C)  current period work-leisure decision. 
D)  future period work-leisure decision. 
E)  future consumption-savings decision.

Question 3

An important feature of the financial market crisis was

Accepted Answer

A)  decreased interest rate spread on risky assets versus safe assets. 
B)  increased investment by firms. 
C)  an increase in the safe credit market interest rate, r. 
D)  increased financial market uncertainty. 
E)  a lower opportunity cost of investment. 
A)  decreased interest rate spread on risky assets versus safe assets. 
B)  increased investment by firms. 
C)  an increase in the safe credit market interest rate, r. 
D)  increased financial market uncertainty. 
E)  a lower opportunity cost of investment.

Question 4

When drawn against the real interest rate,the output demand curve shifts to the right when

Accepted Answer

A)  current capital stock decreases. 
B)  current capital stock increases. 
C)  real wage rate decreases. 
D)  real wage rate increases. 
E)  current capital stock and real wage rate increases, 
A)  current capital stock decreases. 
B)  current capital stock increases. 
C)  real wage rate decreases. 
D)  real wage rate increases. 
E)  current capital stock and real wage rate increases,

Question 5

When there is a temporary increase in total factor productivity,

Accepted Answer

A)  labour demand increases and output supply decreases. 
B)  labour demand decreases and output demand increases. 
C)  labour demand increases and output demand increases. 
D)  labour demand decreases and output supply decreases. 
E)  labour demand increases and output supply increases. 
A)  labour demand increases and output supply decreases. 
B)  labour demand decreases and output demand increases. 
C)  labour demand increases and output demand increases. 
D)  labour demand decreases and output supply decreases. 
E)  labour demand increases and output supply increases.

Question 6

The condition   = w describes the representative consumer's

Accepted Answer

A)  investment decision. 
B)  current consumption-savings decision. 
C)  current period work-leisure decision. 
D)  future period work-leisure decision. 
E)  future consumption-savings decision. 
A)  investment decision. 
B)  current consumption-savings decision. 
C)  current period work-leisure decision. 
D)  future period work-leisure decision. 
E)  future consumption-savings decision.

Question 7

Multipliers above 1 occur in models that in general do not satisfy the

Accepted Answer

A)  Lucas critique. 
B)  Barro critique. 
C)  Romer critique. 
D)  Lucas-Romer critique. 
E)  Barro-Romer critique. 
A)  Lucas critique. 
B)  Barro critique. 
C)  Romer critique. 
D)  Lucas-Romer critique. 
E)  Barro-Romer critique.

Question 8

When drawn against the real interest rate,the output supply curve unambiguously shifts to the right if either or both of the following occur.

Accepted Answer

A)  an increase in current government spending and an increase in future government spending 
B)  an increase in current government spending and a decrease in future government spending 
C)  a decrease in current government spending and an increase in future government spending 
D)  a decrease in current government spending and a decrease in future government spending 
E)  a decrease in current government spending and an increase in the real interest rate 
A)  an increase in current government spending and an increase in future government spending 
B)  an increase in current government spending and a decrease in future government spending 
C)  a decrease in current government spending and an increase in future government spending 
D)  a decrease in current government spending and a decrease in future government spending 
E)  a decrease in current government spending and an increase in the real interest rate

Question 9

The equilibrium effects of a temporary increase in government spending include

Accepted Answer

A)  an increase in the real wage and an increase in the real interest rate. 
B)  an increase in the real wage and a decrease in the real interest rate. 
C)  a decrease in the real wage and an increase in the real interest rate. 
D)  a decrease in the real wage and a decrease in the real interest rate. 
E)  real wages and the real interest rate remaining unchanged. 
A)  an increase in the real wage and an increase in the real interest rate. 
B)  an increase in the real wage and a decrease in the real interest rate. 
C)  a decrease in the real wage and an increase in the real interest rate. 
D)  a decrease in the real wage and a decrease in the real interest rate. 
E)  real wages and the real interest rate remaining unchanged.

Question 10

The output demand curve shows the

Accepted Answer

A)  positive relationship between the wage rate and current aggregate output. 
B)  negative relationship between the wage rate and current aggregate output. 
C)  positive relationship between total factor productivity and current aggregate output. 
D)  positive relationship between the real interest rate and current aggregate output. 
E)  negative relationship between the real interest rate and current aggregate output. 
A)  positive relationship between the wage rate and current aggregate output. 
B)  negative relationship between the wage rate and current aggregate output. 
C)  positive relationship between total factor productivity and current aggregate output. 
D)  positive relationship between the real interest rate and current aggregate output. 
E)  negative relationship between the real interest rate and current aggregate output.

Question 11

Shocks to future total factor productivity can be likened to

Accepted Answer

A)  news about future incomes. 
B)  social security developments. 
C)  expectations about future monetary policy. 
D)  future taxes. 
E)  future government spending. 
A)  news about future incomes. 
B)  social security developments. 
C)  expectations about future monetary policy. 
D)  future taxes. 
E)  future government spending.

When drawn against the real interest rate,the output demand curve shifts to the right when

The condition = w' describes the representative consumer's

An important feature of the financial market crisis was

When drawn against the real interest rate,the output demand curve shifts to the right when

When there is a temporary increase in total factor productivity,

The condition = w describes the representative consumer's

Multipliers above 1 occur in models that in general do not satisfy the

When drawn against the real interest rate,the output supply curve unambiguously shifts to the right if either or both of the following occur.

The equilibrium effects of a temporary increase in government spending include

The output demand curve shows the

Shocks to future total factor productivity can be likened to

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 11: A Real Intertemporal Model with Investment

When drawn against the real interest rate,the output demand curve shifts to the right when

The condition = w' describes the representative consumer's

An important feature of the financial market crisis was

When drawn against the real interest rate,the output demand curve shifts to the right when

When there is a temporary increase in total factor productivity,

The condition = w describes the representative consumer's

Multipliers above 1 occur in models that in general do not satisfy the

When drawn against the real interest rate,the output supply curve unambiguously shifts to the right if either or both of the following occur.

The equilibrium effects of a temporary increase in government spending include

The output demand curve shows the

Shocks to future total factor productivity can be likened to

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters