Multiple Choice
In the Friedman-Lucas money surprise model
A) productivity growth causes real GDP to fluctuate.
B) a Phillips curve relationship does not arise.
C) workers are perfectly informed.
D) an increase in money growth increases aggregate output because workers interpret an increase in nominal wages as an increase in real wages.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: The fact that private sector economic agents
Q4: The rational expectations hypothesis means that<br>A) economic
Q5: The idea that economic agents do not
Q6: A Phillips curve is<br>A) the correlation between
Q7: In the Friedman-Lucas money surprise model,a surprise
Q9: A predominant view among Federal Reserve officials
Q10: The Phillips curve shifts because<br>A) private behavior
Q11: The Phillips curve shifts because<br>A) fiscal policy
Q12: If the central bank cannot commit,then<br>A) the
Q13: The time consistency problem implies that<br>A) the