Chapter 14 Quiz
1. In what ways would you expect inflation-targeting countries to do better than
Inflation is expected to be more stable in countries that use inflation
targeting, without an increase in the volatility o
Chapter 12 Quiz
1. Can policymakers exploit the Phillips curve relationship by trading more
inflation for less unemployment in the short run? In the long run? Explain
both the Classical and Keynesian points of view.
Classicals say the tradeoff exists in
Chapter 14 Homework
1. Define monetary base:
The total amount of currency held by the non-bank public and money
held by banks as reserves.
How does the monetary base differ from the money supply?
The money supply equals the monetary base times the money
Chapter 12 Homework
1. Which of the following best represents the relationship[ between inflation
and unemployment rate?
The Phillips curve
2. According to Friedman and Phelps the expectations-augmented Phillips
curve differs from the traditional Phillip
Chapter 11 Quiz
1. How is full-employment output determined in the Keynesian model with
The amount of output produced by firms with employment
determined by the labor demand curve at the point where the
marginal product of labor equals
Chapter 10 Quiz
1. Which of the following historical facts of monetary policy indicates that
reverse causation alone cannot explain the entire relationship between
money and output?
Monetary changes have often had an independent origin; they have not been
Chapter 11 Homework
1. Use the line drawing tool to draw a line representing a possible efficiency
wage. Be sure hat this line intersects both the supply NS and demand ND*
lines for labor. Label this new line Efficiency Wage.
The efficiency wage is likely
Chapter 10 Homework
1. The discovery of a new technology increases the expected future marginal
product of capital (MPK).
a) Use the Classical IS-LM model (with no misperceptions) to determine the
direct effects of such an increase in the expected future