Exam 12: Monetary Policy and the Phillips Curve

When the dot-com bubble burst it pushed the economy toward a recession.Using the IS-MP diagram,design a monetary policy that would return the economy back to the long-run equilibrium.

(Essay)

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Question 81

Which of the following statements is not true?

(Multiple Choice)

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Question 82

An implication of sticky inflation is that,through monetary policy changes,the Federal Reserve:

(Multiple Choice)

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Question 83

Adaptive expectations imply that firms:

(Multiple Choice)

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Question 84

You've been asked to spend a week or so as the Fed Chairman.It will turn out to be a very interesting week.If your goal is to stabilize inflation and economic activity,what would be your response to these three events? Consider each event individually,independent from the others. (a)a rapid rise in the stock markets rapidly increases people's wealth; (b)Chilean citizens get a sudden taste for Buffalo hot wings (they must be made in Buffalo); (c)firms begin to grow anxious about the decline in consumer confidence.

(Essay)

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Question 85

The Federal Reserve always has targeted interest rates rather than money supply.

(True/False)

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Question 86

The nominal interest rate is the opportunity cost of holding wealth in money and not savings.

(True/False)

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Question 87

When a central bank targets interest rates,it adopts a policy to adjust to accommodate .

(Multiple Choice)

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Question 88

One of the main missions of the Federal Reserve is to stabilize the dollar-pound exchange rate.

(True/False)

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Question 89

In the Phillips curve Is:

(Multiple Choice)

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Question 90

Recent energy legislation that dictates increased use of ethanol as automobile fuel might overall inflation because corn prices ,affecting all downstream industries that use corn __.

(Multiple Choice)

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Question 91

When the Federal Reserve increases the interest rate,the MP curve shifts up and short-term output falls.

(True/False)

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Question 92

-Consider the Phillips curve in Figure 12.3.At point a,;and at point c,.

(Multiple Choice)

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Question 93

"Adaptive expectations" implies that firms adjust their inflation expectations immediately.

(True/False)

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Question 94

The structure of the short-run model is best described by Nominal interest rate Real interest rate Change in inflation.

(True/False)

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Question 95

The most immediate and visible form of inflation shock is:

(Multiple Choice)

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Question 96

In the Phillips curve , Is:

(Multiple Choice)

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Question 97

In most advanced economies,central banks target __________ to conduct monetary policy.

(Multiple Choice)

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Question 98

Which of the following is (are)the mission of the Federal Reserve Bank? i.Preserve price stability. ii.Foster economic growth and employment. iii.Promote a stable financial system.

(Multiple Choice)

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Question 99

The Phillips curve assumes that inflation expectations are:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 100

When the dot-com bubble burst it pushed the economy toward a recession.Using the IS-MP diagram,design a monetary policy that would return the economy back to the long-run equilibrium.

Which of the following statements is not true?

An implication of sticky inflation is that,through monetary policy changes,the Federal Reserve:

Adaptive expectations imply that firms:

The Federal Reserve always has targeted interest rates rather than money supply.

The nominal interest rate is the opportunity cost of holding wealth in money and not savings.

When a central bank targets interest rates,it adopts a policy to adjust to accommodate .

One of the main missions of the Federal Reserve is to stabilize the dollar-pound exchange rate.

In the Phillips curve Is:

Recent energy legislation that dictates increased use of ethanol as automobile fuel might overall inflation because corn prices ,affecting all downstream industries that use corn __.

When the Federal Reserve increases the interest rate,the MP curve shifts up and short-term output falls.

-Consider the Phillips curve in Figure 12.3.At point a,;and at point c,.

"Adaptive expectations" implies that firms adjust their inflation expectations immediately.

The structure of the short-run model is best described by Nominal interest rate Real interest rate Change in inflation.

The most immediate and visible form of inflation shock is:

In the Phillips curve , Is:

In most advanced economies,central banks target __________ to conduct monetary policy.

Which of the following is (are)the mission of the Federal Reserve Bank? i.Preserve price stability. ii.Foster economic growth and employment. iii.Promote a stable financial system.

The Phillips curve assumes that inflation expectations are:

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 12: Monetary Policy and the Phillips Curve

When the dot-com bubble burst it pushed the economy toward a recession.Using the IS-MP diagram,design a monetary policy that would return the economy back to the long-run equilibrium.

Which of the following statements is not true?

An implication of sticky inflation is that,through monetary policy changes,the Federal Reserve:

Adaptive expectations imply that firms:

The Federal Reserve always has targeted interest rates rather than money supply.

The nominal interest rate is the opportunity cost of holding wealth in money and not savings.

When a central bank targets interest rates,it adopts a policy to adjust __________ to accommodate __________.

One of the main missions of the Federal Reserve is to stabilize the dollar-pound exchange rate.

In the Phillips curve Is:

Recent energy legislation that dictates increased use of ethanol as automobile fuel might __________ overall inflation because corn prices __________,affecting all downstream industries that use corn __________.

When the Federal Reserve increases the interest rate,the MP curve shifts up and short-term output falls.

-Consider the Phillips curve in Figure 12.3.At point a,__________;and at point c,__________.

"Adaptive expectations" implies that firms adjust their inflation expectations immediately.

The structure of the short-run model is best described by Nominal interest rate Real interest rate Change in inflation.

The most immediate and visible form of inflation shock is:

In the Phillips curve , Is:

In most advanced economies,central banks target __________ to conduct monetary policy.

Which of the following is (are)the mission of the Federal Reserve Bank? i.Preserve price stability. ii.Foster economic growth and employment. iii.Promote a stable financial system.

The Phillips curve assumes that inflation expectations are:

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

When a central bank targets interest rates,it adopts a policy to adjust to accommodate .

Recent energy legislation that dictates increased use of ethanol as automobile fuel might overall inflation because corn prices ,affecting all downstream industries that use corn __.

-Consider the Phillips curve in Figure 12.3.At point a,;and at point c,.