Question 1

The aggregate supply curve is derived from:

Accepted Answer

A)  Okun's law 
B)  the Phillips curve 
C)  the Fisher equation 
D)  the monetary policy rule 
E)  the interaction of the IS and MP curves 
A)  Okun's law 
B)  the Phillips curve 
C)  the Fisher equation 
D)  the monetary policy rule 
E)  the interaction of the IS and MP curves

Question 2

How does the simple monetary rule dictate interest responses to a decrease in the rate of inflation?

Accepted Answer

The simple monetary

Question 3

Since the 1990s, the country with the lowest rate of inflation has been the United States.

Accepted Answer

A) True 
 B)False

Question 4

Consider the monetary rule $R _ { t } - \bar { r } = 0.25 \left( \pi _ { t } - \bar { \pi } \right)$ . If the inflation rate is 4 percent, the marginal product of capital is 2 percent, and the target rate of inflation is 3 percent, then the real interest rate should be:

Accepted Answer

A)  3.50 percent 
B)  3.25 percent 
C)  2.25 percent 
D)  1.75 percent 
E)  2.50 percent 
A)  3.50 percent 
B)  3.25 percent 
C)  2.25 percent 
D)  1.75 percent 
E)  2.50 percent

Question 5

A sudden increase in the price of oil would cause the AS curve to shift up and to the left.

Accepted Answer

A) True 
 B)False

Question 6

Combining the IS and monetary policy rule curves gives us:

Accepted Answer

A)  Okun's law 
B)  the Phillips curve 
C)  the aggregate demand curve 
D)  the MP curve 
E)  current output 
A)  Okun's law 
B)  the Phillips curve 
C)  the aggregate demand curve 
D)  the MP curve 
E)  current output

Question 7

Between the third and fourth quarters of 2006, the housing bubble burst in the United States. Using the AS/AD framework to discuss the impact of this macroeconomic event, begin and end in the long run.

Accepted Answer

The answer to this is essentially the op

Question 8

Canada has an explicit inflation target.

Accepted Answer

A) True 
 B)False

Question 9

A change in which of the following parameters would cause a movement along the AD curve $\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)$ ?

Accepted Answer

A)  $\overline { \pi }$ 
B)  $\pi _ { t }$ 
C)  $\bar { b }$ 
D)  $\bar { m }$ 
E)  None of these answers are correct. 
A)  $\overline { \pi }$ 
B)  $\pi _ { t }$ 
C)  $\bar { b }$ 
D)  $\bar { m }$ 
E)  None of these answers are correct.

The aggregate supply curve is derived from:

How does the simple monetary rule dictate interest responses to a decrease in the rate of inflation?

Since the 1990s, the country with the lowest rate of inflation has been the United States.

Consider the monetary rule $R _ { t } - \bar { r } = 0.25 \left( \pi _ { t } - \bar { \pi } \right)$ . If the inflation rate is 4 percent, the marginal product of capital is 2 percent, and the target rate of inflation is 3 percent, then the real interest rate should be:

A sudden increase in the price of oil would cause the AS curve to shift up and to the left.

Combining the IS and monetary policy rule curves gives us:

Between the third and fourth quarters of 2006, the housing bubble burst in the United States. Using the AS/AD framework to discuss the impact of this macroeconomic event, begin and end in the long run.

Canada has an explicit inflation target.

A change in which of the following parameters would cause a movement along the AD curve $\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)$ ?

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

Monetary Policy and the Phillips Curve

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 13: Stabilization Policy and the Asad Framework

The aggregate supply curve is derived from:

How does the simple monetary rule dictate interest responses to a decrease in the rate of inflation?

Since the 1990s, the country with the lowest rate of inflation has been the United States.

A sudden increase in the price of oil would cause the AS curve to shift up and to the left.

Combining the IS and monetary policy rule curves gives us:

Between the third and fourth quarters of 2006, the housing bubble burst in the United States. Using the AS/AD framework to discuss the impact of this macroeconomic event, begin and end in the long run.

Canada has an explicit inflation target.

A change in which of the following parameters would cause a movement along the AD curve Y~t=aˉ−bˉmˉ(πt−πˉ)\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)Y~t​=aˉ−bˉmˉ(πt​−πˉ) ?

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

Monetary Policy and the Phillips Curve

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

A change in which of the following parameters would cause a movement along the AD curve $\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)$ ?