Chapter 16 PQ

Chapter 16 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question Figure 16-1 1) Refer to Figure 16 - 1. What should the Federal Reserve do if it wants to move from point A to point B in the short - run Phillips curve depicted in the figure above? A) lower taxes B) lower the discount rate C) buy treasury bills D) increase the money supply E) sell treasury bills 1) 2) Refer to Figure 16 - 1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point B in the long run? A) sell treasury bills B) buy treasury bills C) decrease the money supply D) raise the discount rate E) no policy will move the economy to point B in the long run 2) 3) Refer to Figure 16 - 1. Suppose that the economy is currently at point A on the short - run Phillips curve in the figure above, and the unemployment rate at A is the natural rate. If the economy was to move to point C, which of the following must be true? A) the Fed conducted contractionary policy to cause the move
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This note was uploaded on 05/02/2009 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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Chapter 16 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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