A) slowing a car down,whereas deflation is like putting the car into reverse gear. B) maintaining a car's speed,whereas deflation is like slowing the car down. C) putting a car into reverse gear,whereas deflation is like slowing the car down. D) maintaining a car's speed,whereas deflation is like putting the car into reverse gear. A) slowing a car down,whereas deflation is like putting the car into reverse gear. B) maintaining a car's speed,whereas deflation is like slowing the car down. C) putting a car into reverse gear,whereas deflation is like slowing the car down. D) maintaining a car's speed,whereas deflation is like putting the car into reverse gear.

Exam 22: The Short Run Trade Off Between Inflation and Unemployment: The Cost of Reducing Inflation

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Monetary Policy in Flosserland In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has had an inflation rate of 25% for many years. -Refer to Monetary Policy in Flosserland.Suppose that the Flosserland Department of Finance has run a public relations campaign claiming it will reduce inflation to 12.5% but it actually raises inflation to 30%.Suppose that the public had expected that the Department of Finance would reduce inflation but only to 22%.Then

(Multiple Choice)

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Question 21

The restrictive monetary policy followed by the Fed in the early 1980s

(Multiple Choice)

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Question 22

If people believe that the central bank is going to reduce inflation,then

(Multiple Choice)

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Question 23

The Economy in 2008 In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy. -Refer to The Economy in 2008.In the short-run the effects of the housing and financial crises

(Multiple Choice)

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Question 24

The theory by which people optimally use all available information when forecasting the future is known as

(Multiple Choice)

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Question 25

Other things the same,if the central bank decreases the rate at which it increases the money supply,then in the long run

(Multiple Choice)

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Question 26

If a central bank attempts to lower the inflation rate but the public doesn't believe the inflation rate will fall as far as the central bank says,then in the short run unemployment

(Multiple Choice)

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(33)

Question 27

The Economy in 2008 In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy. -Refer to the Economy in 2008.The effects of increased prices of world commodities is shown by shifting

(Multiple Choice)

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Question 28

Disinflation is like

(Multiple Choice)

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Question 29

Over the long run the Volcker disinflation

(Multiple Choice)

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Question 30

Suppose the economy is currently experiencing 6% inflation per year.If the Fed wants to reduce inflation to 2% and the sacrifice ratio is 5,then how much annual output must be sacrificed in the transition?

(Multiple Choice)

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Question 31

Suppose a central bank takes actions that will lead to a higher inflation rate.The public,however,is slow to adjust its expectation of inflation.Then,in the short run,unemployment

(Multiple Choice)

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Question 32

Typical estimates of the sacrifice ratio suggest that a one-percentage-point reduction in the inflation rate requires

(Multiple Choice)

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Question 33

The Economy in 2008 In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy. -Refer to The Economy in 2008.Given the effects of the financial and housing crisis on the price level and output and the effects of increased world commodity prices on the price level and output,the aggregate demand and aggregate supply model tells us that

(Multiple Choice)

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Question 34

The sacrifice ratio is the

(Multiple Choice)

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Question 35

Monetary Policy in Flosserland In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has had an inflation rate of 25% for many years. -Refer to Monetary Policy in Flosserland.Suppose that the Flosserland Department of Finance has run a public relations campaign claiming it will reduce inflation to 12.5% but that it actually leaves inflation at 25%.Suppose that the public had expected that the Department of Finance would reduce inflation,but only to 20%.Then

(Multiple Choice)

4.9/5

(42)

Question 36

The long-run response to an increase in the growth rate of the money supply is shown by shifting

(Multiple Choice)

4.9/5

(27)

Question 37

Monetary Policy in Flosserland In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has had an inflation rate of 25% for many years. -Refer to Monetary Policy in Flosserland.Suppose that the Flosserland Department of Finance undertakes a public relations campaign to convince people that it will soon change monetary policy to reduce inflation to 12.5%.If Flosserlanders believe their government then which,if any,curve(s)shift left?

(Multiple Choice)

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Question 38

Which of the following would tend to shorten recessions associated with anti-inflation policies by central banks?

(Multiple Choice)

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Question 39

If the sacrifice ratio is 3,then reducing the inflation rate from 5 percent to 3 percent would require sacrificing

(Multiple Choice)

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(34)

Question 40

Showing 21 - 40 of 87

Exam 22: The Short Run Trade Off Between Inflation and Unemployment: The Cost of Reducing Inflation

The restrictive monetary policy followed by the Fed in the early 1980s

If people believe that the central bank is going to reduce inflation,then

The Economy in 2008 In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy. -Refer to The Economy in 2008.In the short-run the effects of the housing and financial crises

The theory by which people optimally use all available information when forecasting the future is known as

Other things the same,if the central bank decreases the rate at which it increases the money supply,then in the long run

If a central bank attempts to lower the inflation rate but the public doesn't believe the inflation rate will fall as far as the central bank says,then in the short run unemployment

The Economy in 2008 In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy. -Refer to the Economy in 2008.The effects of increased prices of world commodities is shown by shifting

Disinflation is like

Over the long run the Volcker disinflation

Suppose the economy is currently experiencing 6% inflation per year.If the Fed wants to reduce inflation to 2% and the sacrifice ratio is 5,then how much annual output must be sacrificed in the transition?

Suppose a central bank takes actions that will lead to a higher inflation rate.The public,however,is slow to adjust its expectation of inflation.Then,in the short run,unemployment

Typical estimates of the sacrifice ratio suggest that a one-percentage-point reduction in the inflation rate requires

The sacrifice ratio is the

The long-run response to an increase in the growth rate of the money supply is shown by shifting

Which of the following would tend to shorten recessions associated with anti-inflation policies by central banks?

If the sacrifice ratio is 3,then reducing the inflation rate from 5 percent to 3 percent would require sacrificing

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income

Measuring a Nations Income: The Economy's Income and Expenditure