90) With which of the following statements would aʺreal business cycleʺtheorist most closely agree? A)ʺMonetary policies have greatest impact on real GDP when they are anticipated.ʺB)ʺExpansionary monetary policy allows the central bank to control inflation andunemployment simultaneously.ʺC)ʺTechnological shocks to the economy explain deviations of real GDP from its potentiallevel.ʺD)ʺWages adjust slowly to changes in inflation as long as expectations are formed rationally.ʺAnswer: C 90) Diff: 3 Page Ref: 964/590 Topic: Real Business Cycle Models Learning Outcome: Macro 17: Discuss the fundamentals of key macroeconomic theories AACSB: Reflective Thinking 91) What impact does expansionary monetary policy have on the short-run Phillips curve ifconsumers and firms expect the expansionary monetary policy to increase inflation? 91) Diff: 2 Page Ref: 961 - 962/587 - 588 Topic: Expectations of Inflation Learning Outcome: Macro 12: Explain how monetary policy influences interest rates, aggregate demand, real GDP, and inflation AACSB: Analytic Skills TRUE/FALSE. Write ʹ T ʹ if the statement is true and ʹ F ʹ if the statement is false. 92) During the 1960s, in face of moderate and stable inflation, people tended to form adaptiveexpectations of future inflation rates.92) Diff: 1 Page Ref: 962 - 963/588 - 589 Topic: Adaptive Expectations Learning Outcome: Macro 1: Define macroeconomics and identify its basic concerns AACSB: 93) In face of rational expectations regarding changes in monetary policy, the short-run Phillips Curvemay be vertical.93) Diff: 1 Page Ref: 962 - 963/588 - 589 Topic: Rational Expectations Learning Outcome: Macro 17: Discuss the fundamentals of key macroeconomic theories AACSB: Reflective Thinking
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- Three '11
- Inflation, AACSB, Page Ref, Saab Automobile, Interstate 90, key macroeconomic theories