An increase in the inflation rate shifts the labor A) supply curve to the right. B) supply curve to the left. C) demand curve to the right. D) demand curve to the left. ANSWER B
Date: September 10th, 2020
As wages and prices become more sticky ________. A) the short-run Phillips curve gets flatter B) wages become less responsive to unemployment deviations from the natural rate C) it becomes easier to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
The quantity theory of money explains how ________ depends on ________. A) real GDP; the money supply B) the price level; the demand for money C) the money supply; the velocity of money D) all of the above E) none of the above ANSWER E
Date: September 10th, 2020
The financial market events of September and October 2008 ________. A) sparked a sharp widening of the credit spread B) signalled the success of the policy response to the financial crisis C) reduced some of the uncertainty that had paralyzed financial markets D) resulted from the federal funds rate having fallen below zero ANSWER […]
Date: September 10th, 2020
The marginal rate of substitution measures A) the willingness of a consumer to exchange a good with another consumer. B) the willingness of a consumer to pay the form for a good. C) the value in dollars of the last unit of good obtained by the consumer. D) the rate at which a consumer is […]
Date: September 10th, 2020
If an increase in the growth rate of the money supply results in an equal increase in the rate of inflation with no effect on any real variables, we say that A) the classical dichotomy fails. B) money is neutral. C) money is superneutral. D) money is the most preferred store of value. ANSWER […]
Date: September 10th, 2020
In the monetary intertemporal model, the long-run effects of an increase in the growth rate of money include A) an increase in output and an increase in the real wage. B) an increase in output and a decrease in the real wage. C) a decrease in output and an increase in the real wage. D) […]
Date: September 10th, 2020
The velocity of money ________. A) represents the average number of times a dollar turns over through the year B) provides the link between the money supply and nominal income C) times the money supply should equal total income, according to the equation of exchange D) all of the above E) none of the above […]
Date: September 10th, 2020
If wages and prices become extremely flexible ________. A) there is no trade off between inflation and unemployment B) unemployment can hardly deviate from the natural rate C) it becomes very difficult to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
The worst weekly decline in U.S. stock market history occurred during the week beginning with ________. A) March 20, 1933 B) December 7, 1941 C) September 12, 2001 D) October 6, 2008 ANSWER D
Date: September 10th, 2020
