In the equation Y = (1/1 – b + v)(a + I + G + X − u), the term (1/1 – b + v) is referred to as the a. level of autonomous expenditures. b. autonomous expenditure multiplier. c. balanced budget multiplier. d. tax multiplier. ANSWER B
Date: September 10th, 2020
In a one-period economy, real consumption A) is always less than disposable income. B) is typically greater than disposable income. C) is exactly equal to disposable income. D) can be greater than, less than, or equal to disposable income. ANSWER C
Date: September 10th, 2020
Given the accelerationist Phillips curve Δπ = – 0.7 (U – 5 ) + ρ, suppose that inflation has increased from 8 percent to 10 percent. If the unemployment rate is 4 percent, then the price shock is ________. A) 2.7 percent B) 0.6 percent C) 1.3 percent D) 1 percent E) none of the […]
Date: September 10th, 2020
Some of the most renowned examples of hyperinflation occurred in Austria, Hungary, Germany and Poland shortly after A) the collapse of the Austro-Hungarian Empire. B) World War I. C) World War II. D) the fall of the Berlin Wall. ANSWER B
Date: September 10th, 2020
We measure economic growth by the percentage change in real GDP. In general terms outline the course of the U.S. output growth rate in recent decades, both in terms of its trend and its changes around trend. Pay particular attention to the stability of the growth rate. ANSWER Real output growth has been highly […]
Date: September 10th, 2020
In the two-period model with limited commitment, if the collateral constraint binds A) increases in the present value of collateral increase current consumption and reduce future consumption. B) increases in the present value of collateral increase current consumption one-for-one. C) increases in the present value of collateral decrease current consumption and increase future consumption. D) […]
Date: September 10th, 2020
From the equation of exchange, if both real income (Y) and the quantity of money (M) double and the price level (P) remains constant, then velocity (V) ________ and nominal income ________. A) remains constant; doubles B) doubles; remains constant C) doubles; doubles D) decreases by 50 percent; quadruples E) none of the above […]
Date: September 10th, 2020
In the quantity theory of money, which of these variables is endogenous? A) the price level B) the velocity of money C) real output D) the money supply E) none of the above ANSWER A
Date: September 10th, 2020
For assessing whether or not and how much of an asset to hold, the important consideration is the asset’s amount of A) diversifiable risk. B) nondiversifiable risk. C) relative risk. D) absolute risk. ANSWER B
Date: September 10th, 2020
Based on the data in this table, U ρ π period 1 6 1 4 period 2 8 0 3.2 period 3 8 2 4.4 If the natural rate of unemployment is steady at 7 percent, and, in period four, there is no price shock and unemployment is 8 percent, then the inflation rate in […]
Date: September 10th, 2020
