Question 1

The constant growth rate rule for money,as initially proposed by Milton Friedman,has been adjusted ________.

Accepted Answer

A) to take the problem of moral hazard in account 
B) to account for the role played by adaptive expectations in policy formation 
C) for the difference between real and nominal economic variables 
D) to allow for possible short-run movements in velocity 
A) to take the problem of moral hazard in account 
B) to account for the role played by adaptive expectations in policy formation 
C) for the difference between real and nominal economic variables 
D) to allow for possible short-run movements in velocity

Question 2

During his tenure at the helm of the Federal Reserve System,Paul Volcker reestablished ________.

Accepted Answer

A) a system of fixed exchange rates 
B) the role of open market operations in the monetary policy actions of the Fed 
C) the credibility of the Federal Reserve as an inflation fighting institution 
D) the targeting of monetary aggregates,like the fed funds rate 
A) a system of fixed exchange rates 
B) the role of open market operations in the monetary policy actions of the Fed 
C) the credibility of the Federal Reserve as an inflation fighting institution 
D) the targeting of monetary aggregates,like the fed funds rate

Question 3

Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate,if ________.

Accepted Answer

A) changes in expectations are properly considered 
B) policy actions are anticipated 
C) economic behavior is guided by rational expectations 
D) policy changes are understood to be permanent 
A) changes in expectations are properly considered 
B) policy actions are anticipated 
C) economic behavior is guided by rational expectations 
D) policy changes are understood to be permanent

Question 4

According to the Taylor rule ________.

Accepted Answer

A) expectations are formed in an adaptive fashion 
B) the central bank should set its federal funds rate target by a formula that puts weight on both output and inflation gaps 
C) a constant growth rate rule for money should be adopted 
D) expectations should be formed consistent with the model of rational expectations 
A) expectations are formed in an adaptive fashion 
B) the central bank should set its federal funds rate target by a formula that puts weight on both output and inflation gaps 
C) a constant growth rate rule for money should be adopted 
D) expectations should be formed consistent with the model of rational expectations

Question 5

If the public believes the commitment to a nominal anchor to be credible,the effect of a positive aggregate demand shock is for ________.

Accepted Answer

A) short-run aggregate supply to shift up 
B) short-run aggregate supply to be unaffected 
C) short-run aggregate supply to shift down 
D) inflation,but not economic activity,to increase 
A) short-run aggregate supply to shift up 
B) short-run aggregate supply to be unaffected 
C) short-run aggregate supply to shift down 
D) inflation,but not economic activity,to increase

Question 6

An example of the political business cycle in action came during the ________.

Accepted Answer

A) Roosevelt administration of the 1920s 
B) Nixon administration of the 1970s 
C) Reagan administration of the 1980s 
D) Bush administration of the 2000s 
A) Roosevelt administration of the 1920s 
B) Nixon administration of the 1970s 
C) Reagan administration of the 1980s 
D) Bush administration of the 2000s

The constant growth rate rule for money,as initially proposed by Milton Friedman,has been adjusted ________.

During his tenure at the helm of the Federal Reserve System,Paul Volcker reestablished ________.

Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate,if ________.

According to the Taylor rule ________.

If the public believes the commitment to a nominal anchor to be credible,the effect of a positive aggregate demand shock is for ________.

An example of the political business cycle in action came during the ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

Modern Business Cycle Theory

Filters

Exam 21: The Role of Expectations in Macroeconomic Policy

The constant growth rate rule for money,as initially proposed by Milton Friedman,has been adjusted ________.

During his tenure at the helm of the Federal Reserve System,Paul Volcker reestablished ________.

Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate,if ________.

According to the Taylor rule ________.

If the public believes the commitment to a nominal anchor to be credible,the effect of a positive aggregate demand shock is for ________.

An example of the political business cycle in action came during the ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

Modern Business Cycle Theory

Filters