ECONOMICS 1120198 - 151 theunemploymentrate A B C D

ECONOMICS 1120198 - 151 theunemploymentrate A B C D

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151) In which of the following situations might you expect expansionary monetary policy to reducethe unemployment rate? A) if changes in monetary policy are unanticipatedB) if actual inflation is lower than expectedC) if actual inflation is higher than expectedD) if expectations are rational151)Answer: BPage Ref: 996-997/614-615Learning Outcome: Macro-12: Explain how monetary policy influences interest rates, aggregate demand, realGDP and inflation. 152) Some economists argue that the short-run Phillips curve is not vertical, and that monetary policycan be effective in the short run. Which one of the following isnotone of the reasons for thisskepticism? 152)Page Ref: 996-997/614-615Learning Outcome: Macro-12: Explain how monetary policy influences interest rates, aggregate demand, realGDP and inflation. 153) Lucas and Sargent argue that the short-run trade-off between unemployment and inflation iscaused by 153)Page Ref: 996-997/614-615Learning Outcome: Macro-17: Discuss the fundamentals of key macroeconomic theories. 154) If wages and prices adjust slowly, we would expect expansionary monetary policy to be Page Ref: 996-997/614-615Learning Outcome: Macro - 17: Discuss the fundamentals of key macroeconomic theories. 36
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