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Question 4 2 pts According to the short-run Philliips curve, a more expansionary monetary policy that...
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are...
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are O useless in the long run. O useless in the short run O ineffective on the price level O None of these. QUESTION 4 1 points Save According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will: O place downward pressure on prices. O reduce unemployment. O reduce output O reduce the natural rate of unemployment. 1 pointsS...
32. The rational expectations hypotheses implies that discretionary macroeconomic policy is: a. relatively effective in both...
32. The rational expectations hypotheses implies that discretionary macroeconomic policy is: a. relatively effective in both the short run and long run b. relatively effective in the short run but ineffective in the long run c. relatively ineffective in both the short run and long run d. effective in the long run since decision makers will continually make predictable, systematic errors 33. The modern view of the Phillips curve suggests that a. when inflation is less than anticipated, unemployment will...
1) of the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision...
1) of the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at ful employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is very low B) the money demand will shift...
drop down options are as follows: 1. (lower/higher) 2. (lower/higher) 3. (short-run/long-run) 4.(raising/lowering) 5.(late1990s/1960s/early1980s/1970s) The drop...
drop down options are as
follows: 1. (lower/higher) 2. (lower/higher) 3.
(short-run/long-run) 4.(raising/lowering)
5.(late1990s/1960s/early1980s/1970s)
The drop down options are as follows: 1. (down/up) 2.
(higher/lower) 3. (down/up) 4. (rise/remain unchanged/fall)
please help solve these, there was no graphs provided and the
questions are complete.
An article in the Economist started by stating "That central banks cannot endlessly reduce unemployment without sparking inflation is economic gospel. It follows from 'a substantial body of theory, informed by considerable historical evidence,' according to...
In February 2014, South Africa had an inflation interest rates in January and is expected to increase or maintain the interest rates through 2014
QUESTION 4 In February 2014, South Africa had an inflation interest rates in January and is expected to increase or maintain the interest rates through 2014. The South African central bank is pursuing rate of 5.9 % and an unemployment rate of 24.1%. The South African central bank raised a(n): contractionary monetary policy to contain inflation. expansionary monetary policy to contain inflation. expansionary monetary policy to fight unemployment. contractionary monetary policy to fight unemployment QUESTION 5 When the economy is sluggish, the Fed will: raise interest rates, which...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment...
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment and steady prices. Low rates of unemployment means that the economy is operating at its full potential. To ensure the economy continues to operate at potential GDP (full capacity where all savings are invested in production functions, and where all those who wish to work can find a job, and all other factors of production are fully utilized in the production function), governments use...
1. In the short run, expansionary monetary policy ___________ real gross domestic product (GDP), ___________ unemployment,...
1. In the short run, expansionary monetary policy ___________ real gross domestic product (GDP), ___________ unemployment, and ___________ the price level. a. raises; raises; raises b. raises; lowers; lowers c. lowers; lowers; lowers d. lowers; lowers; raises e. raises; lowers; raises
4. Problems and Applications Q4Suppose the economy is in a long-run equilibrium, as shown on...
4. Problems and Applications Q4Suppose the economy is in a long-run equilibrium, as shown on
the following graph. Now suppose a fall in government purchases
reduces aggregate demand.On the following graph, shift a curve or adjust the point to
reflect the short-run effect of reduction in government
purchases.True or False: If the Fed undertakes
expansionary monetary policy, it can return the economy to its
original inflation rate and original unemployment rate.
________ Now, suppose the economy is back in long-run equilibrium, and...
Suppose the economy is in a long-run equilibrium, as shown on the following graph. Now suppose...
Suppose the economy is in a long-run equilibrium, as shown on the following graph. Now suppose a wave of business pessimism reduces aggregate demand. On the following graph, shirt a curve or adjust the point to reflect the short-run effect of business pessimism. LRPC Inflation Rate SRPC Unemployment Rate If the Fed undertakes expansionary monetary policy, it return the economy to its original inflation rate and original unemployment rate. Now, suppose the economy is back in long-run equilibrium, and then...
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are O useless in the long run. O useless in the short run O ineffective on the price level O None of these. QUESTION 4 1 points Save According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will: O place downward pressure on prices. O reduce unemployment. O reduce output O reduce the natural rate of unemployment. 1 pointsS...
1) of the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at ful employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is very low B) the money demand will shift...
drop down options are as
follows: 1. (lower/higher) 2. (lower/higher) 3.
(short-run/long-run) 4.(raising/lowering)
5.(late1990s/1960s/early1980s/1970s)
The drop down options are as follows: 1. (down/up) 2.
(higher/lower) 3. (down/up) 4. (rise/remain unchanged/fall)
please help solve these, there was no graphs provided and the
questions are complete.
An article in the Economist started by stating "That central banks cannot endlessly reduce unemployment without sparking inflation is economic gospel. It follows from 'a substantial body of theory, informed by considerable historical evidence,' according to...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
4. Problems and Applications Q4Suppose the economy is in a long-run equilibrium, as shown on
the following graph. Now suppose a fall in government purchases
reduces aggregate demand.On the following graph, shift a curve or adjust the point to
reflect the short-run effect of reduction in government
purchases.True or False: If the Fed undertakes
expansionary monetary policy, it can return the economy to its
original inflation rate and original unemployment rate.
________ Now, suppose the economy is back in long-run equilibrium, and...
Suppose the economy is in a long-run equilibrium, as shown on the following graph. Now suppose a wave of business pessimism reduces aggregate demand. On the following graph, shirt a curve or adjust the point to reflect the short-run effect of business pessimism. LRPC Inflation Rate SRPC Unemployment Rate If the Fed undertakes expansionary monetary policy, it return the economy to its original inflation rate and original unemployment rate. Now, suppose the economy is back in long-run equilibrium, and then...
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