Anti-inflationary policy is less costly when that policy is anticipated in ________. A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) institutionalist theory ANSWER B
Date: September 10th, 2020
Over the past two decades, the saving rate in China has been approximately ________%. A) 17 B) 80 C) 40 D) 5 ANSWER C
Date: September 10th, 2020
Forecasting the future path of real GDP by exploiting past statistical relationships A) is never very reliable. B) can be accomplished by the construction and use of an index of leading variables. C) can be accomplished by the construction and use of an index of lagging variables. D) can be accomplished by the construction and […]
Date: September 10th, 2020
The aggregate demand curve is Y = 15 – 0.2π when the inflation rate falls from 6 percent to 5 percent. Then, output increases from 13.8 to 17. The response of monetary policy to the inflation decline has been ________. A) autonomous tightening B) automatic adjustment C) autonomous easing D) to increase autonomous spending E) […]
Date: September 10th, 2020
We limit ourselves to two periods in the intertemporal model of the business cycle because A) we need to concentrate on the two phases of the business cycle. B) we can assume that people can live two periods of, say, 30 years. C) this is all we need to emphasize the intertemporal trade-off. D) we […]
Date: September 10th, 2020
The possibility that unanticipated policy changes are an important source of output fluctuations is most consistent with ________. A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) institutionalist theory ANSWER B
Date: September 10th, 2020
Use Tobin’s q theory and the neoclassical theory of investment to explain how optimistic scenarios of the “information age” would cause overinvestment in computer-related capital goods, and how that overinvestment would cause a sudden reversal. What will be an ideal response? ANSWER A high expected marginal product of capital causes a high demand for […]
Date: September 10th, 2020
If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a A) conventional variable. B) coincident variable. C) leading variable. D) lagging variable. ANSWER D
Date: September 10th, 2020
An increase in autonomous investment in a small open economy will cause ________. A) a trade surplus to shrink B) a trade deficit to increase C) lower net capital outflows D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
In many economies, a substantial fraction of investment is by multinational corporations (MNCs) whose stock value is determined on global markets. Based on Tobin’s q theory, how might we expect MNC investment to affect the volatility of aggregate investment in an economy? ANSWER If investment is sensitive to global market valuation, then it is […]
Date: September 10th, 2020
