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
Homework Answers
Answer
Option
e. raises; lowers; raises
===
Expansionary monetary policy increases the money supply that decreases interest rate which increases investment spending and that increases aggregate demand which increases price level and real GDP and decreases the unemployment rate.
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1. In the short run, expansionary monetary policy
___________ real gross domestic product (GDP), ___________
unemployment,...
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In the short run, expansionary fiscal policy can cause la rise in real GDP 2: O in combination with a rise in the price level. 3: O in combination with no rise in the price level. 6 in combination with a rise or reduction in the price level, depending on the economy 4: in combination with a reduction in the price level.
Question 4 2 pts According to the short-run Philliips curve, a more expansionary monetary policy that...
Question 4 2 pts According to the short-run Philliips curve, a more expansionary monetary policy that increases inflation will also: o reduce unemployment lower interest rates increase unemployment o have no effect on unemployment lead to higher GDP/capita
2. Suppose the economy is in long-run equilibrium, with real GDP at $19 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases money supply by 6%. a) Illust...
2. Suppose the economy is in long-run equilibrium, with real GDP at $19 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases money supply by 6%. a) Illustrate the short-run effects of the monetary policy by using aggregate demand-aggregate supply model. Be sure to indicate the direction of change in real GDP, the price level and the unemployment rate. b) Illustrate the long-run effects of the monetary policy by using aggregate demand-aggregate supply model....
If the economy is at the natural rate of unemployment with the level of real GDP...
If the economy is at the natural rate of unemployment with the level of real GDP at potential output, what would expansionary fiscal or monetary policy do to the economy? How would the economy be effected in the short run and long run? Does the Phillips Curve theory explain what happens?
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...
Beginning from a position of long-run equilibrium, an expansionary monetary policy by the Bank of Canada...
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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...
Question 2 If over a period of time real gross domestic product (GDP) increases while nominal...
Question 2 If over a period of time real gross domestic product (GDP) increases while nominal GDP decreases, then this implies Select one: a. a significant rise in the price level. b. a significant drop in the price level. c. that real GDP is higher than nominal GDP. d. that the given period occurs before the base period. e. that the given period year occurs after the base period. Question 3 Indicate which expenditure category of GDP changes and the...
Tariffs and quotas: A. in the short run, provide a competitive advantage to domestic producers of...
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(A) Real gross domestic product (GDP) increased from $16.62 trillion to $18.05 trillion, and the price...
(A) Real gross domestic product (GDP) increased from $16.62 trillion to $18.05 trillion, and the price level increased from 120.0 to 123.4. Rounding to the nearest second decimal, how much was the growth rate of nominal GDP? (B) A US computer company buys computers from a US company for their workers. Which category of US gross domestic product (GDP) is this included? (C, I, G, NX or none of the four) (C) Refer to the following table, compute the CPI...
In the short run, expansionary fiscal policy can cause la rise in real GDP 2: O in combination with a rise in the price level. 3: O in combination with no rise in the price level. 6 in combination with a rise or reduction in the price level, depending on the economy 4: in combination with a reduction in the price level.
Question 4 2 pts According to the short-run Philliips curve, a more expansionary monetary policy that increases inflation will also: o reduce unemployment lower interest rates increase unemployment o have no effect on unemployment lead to higher GDP/capita
2. Suppose the economy is in long-run equilibrium, with real GDP at $19 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases money supply by 6%. a) Illustrate the short-run effects of the monetary policy by using aggregate demand-aggregate supply model. Be sure to indicate the direction of change in real GDP, the price level and the unemployment rate. b) Illustrate the long-run effects of the monetary policy by using aggregate demand-aggregate supply model....
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...
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