If people assume that future rates of inflation will they are said to have

If people assume that future rates of inflation will

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177) If people assume that future rates of inflation will ________, they are said to have adaptiveexpectations. A) not be related to inflation rates of the pastB) be higher than inflation rates of the pastC) be lower than inflation rates of the pastD) follow the pattern of inflation rates in the pastAnswer: D 177) Page Ref: 996 - 997/614 - 615 Learning Outcome: Macro - 17: Discuss the fundamentals of key macroeconomic theories. 178) Models that focus on factors other than changes in the money supply to explain fluctuations inreal GDP are called Page Ref: 998/616 Learning Outcome: Macro - 17: Discuss the fundamentals of key macroeconomic theories. 179) ________ would be the source of aʺrealʺbusiness cycle. Page Ref: 998/616 Learning Outcome: Macro - 17: Discuss the fundamentals of key macroeconomic theories. 42
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180) According to ________, the economy is normally at potential GDP. 180) Page Ref: 998/616 Learning Outcome: Macro - 17: Discuss the fundamentals of key macroeconomic theories. 181) With which of the following statements would aʺreal business cycleʺtheorist most closely agree? A)ʺExpansionary monetary policy allows the central bank to control inflation andunemployment simultaneously.B)ʺTechnological shocks to the economy explain deviations of real GDP from its potentiallevel.ʺC)ʺWages adjust slowly to changes in inflation as long as expectations are formed rationally.ʺD)ʺMonetary policies have greatest impact on real GDP when they are anticipated.ʺAnswer: B ʺ 181) Page Ref: 998/616 Learning Outcome: Macro - 17: Discuss the fundamentals of key macroeconomic theories. 182) What impact does expansionary monetary policy have on the short-run Phillips curve ifconsumers and firms expect the expansionary monetary policy to increase inflation? 182) Page Ref: 995 - 996/613 - 614 Learning Outcome: Macro - 12: Explain how monetary policy influences interest rates, aggregate demand, real GDP and inflation.
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