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quiz2questions - 14.02. Fall 2001 QUIZ 2 STOP! READ...

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14.02. — Fall 2001 — QUIZ 2 STOP! READ INSTRUCTIONS FIRST: Please, w r i tedownyou rnameinthetopr igh tco rne ro feve ry page . Read all questions carefully and completely before beginning the exam. Label all of your graphs, including axes, clearly; if we can’t read the graph, you will lose points on your answer. Show your work on all questions in order to receive partial credit. The quiz is worth a total of 100 points. No notes, calculators, or books may be used during the quiz. You will have 2 hours to complete the quiz., although it should take you considerably less than that. Good luck! NAME: TA: SECTION/RECITATION TIME: 1
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QUESTION 1: TRUE, FALSE or UNCERTAIN. 20 points Explain your answer completely but brie f y. 1. An expansionary monetary policy lowers the natural rate of output. (5 points) 2. When an economy opens to trade and subsequently increases the degree of competition faced by producers in the F nal goods market, the natural rate of unemployment increases.(5 points) 3. In a dynamic context, a monetary contraction is followed by an immediate increase in the interest rate. The new interest rate (at impact) is higher than the F nal equilibrium interest rate. (5points) 2
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4. There are 2 countries in the world, A and B, which mantain a f
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This note was uploaded on 11/29/2009 for the course 14 14.02 taught by Professor Geurrieri during the Fall '09 term at MIT.

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quiz2questions - 14.02. Fall 2001 QUIZ 2 STOP! READ...

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