Macroeconomics

What issue is there regarding housing and the measurement of GDP? A)

What issue is there regarding housing and the measurement of GDP? A) residential investment is measured using current house prices, not construction prices. B) houses are a capital and a consumption good. C) one does not know whether a house will be owned or rented when it is built. D) mobile homes are not counted. […]

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Date: September 10th, 2020

How might real business cycle theorists respond to evidence of procycl

How might real business cycle theorists respond to evidence of procyclical inflation? What will be an ideal response?   ANSWER Since the aggregate demand curve is negatively-sloped, changes in potential output should relate negatively to inflation. Rising potential (actual) output should put downward pressure on prices, while negative productivity shocks should force prices up. Defenders […]

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Date: September 10th, 2020

Autonomous easing of monetary policy involves ________. A) raising in

Autonomous easing of monetary policy involves ________. A) raising interest rates and shifting the MP curve to the right B) lowering interest rates and shifting the MP curve to the left C) raising interest rates and shifting the MP curve to the left D) lowering interest rates and shifting the MP curve to the right […]

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Date: September 10th, 2020