A) Expansionary monetary policy shifts aggregate demand to the left,moving the economy from long-run equilibrium to a short-run equilibrium with a lower price level and a lower level of real gross domestic product (GDP) .In the long run,as resource prices fall,the short-run aggregate supply curve shifts to the right,bringing the economy back to a long-run equilibrium where no real changes to GDP have occurred.
B) Expansionary monetary policy shifts aggregate demand to the right,moving the economy from long-run equilibrium to a short-run equilibrium with a higher price level and a higher level of real gross domestic product (GDP) .In the long run,as resource prices rise,the aggregate demand curve shifts back to the left,causing the economy to expand.
C) Expansionary monetary policy shifts aggregate demand to the right,moving the economy from long-run equilibrium to a short-run equilibrium with a higher price level and a higher level of real gross domestic product (GDP) .In the long run,as resource prices rise,the short-run aggregate supply curve shifts to the left,bringing the economy back to a long-run equilibrium where no real changes to GDP have occurred.
D) Expansionary monetary policy shifts aggregate demand to the right,moving the economy from long-run equilibrium to a short-run equilibrium with a higher price level and a higher level of real gross domestic product (GDP) .In the long run,as resource prices fall,the short-run aggregate supply curve shifts to the right as well,causing the economy to expand.
E) Expansionary monetary policy shifts aggregate demand to the left,moving the economy from long-run equilibrium to a short-run equilibrium with a lower price level and a lower level of real gross domestic product (GDP) .In the long run,as resource prices rise,the short-run aggregate supply curve shifts to the left,causing the economy to contract.
Correct Answer
verified
Correct Answer
verified
A) movement along; shift of
B) shift of; movement along
C) shift of; shift of
D) movement along; movement along
E) shift of; rotation of
Correct Answer
verified
Correct Answer
verified
A) active
B) expansionary
C) contractionary
D) adaptive
E) passive
Correct Answer
verified
Correct Answer
verified
A) monetary policy prescriptions were strictly passive.
B) monetary policy had no real effects in the short run.
C) monetary policy prescriptions were strictly activist.
D) monetary policy only had real effects in the long run.
E) economists did not understand the idea of sticky prices.
Correct Answer
verified
Correct Answer
verified
A) lowers; aggregate demand; right
B) lowers; aggregate demand; left
C) raises; aggregate demand; right
D) raises; aggregate demand; left
E) lowers; short-run aggregate supply; right
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
Expansionary monetary policy should be s...View Answer
Correct Answer
verified
View Answer
A) The price level remains constant,and real gross domestic product (GDP) decreases.
B) The price level increases,and real gross domestic product (GDP) increases.
C) The price level increases,and real gross domestic product (GDP) decreases.
D) The price level decreases,and real gross domestic product (GDP) remains constant.
E) The price level increases,and real gross domestic product (GDP) remains constant.
Correct Answer
verified
Correct Answer
verified
A) a central bank has no impact on the unemployment rate.
B) a central bank has no impact on inflation.
C) a central bank can choose higher or lower unemployment rates simply by adjusting the rate of inflation in an economy.
D) prices are completely flexible.
E) unemployment and inflation are unrelated.
Correct Answer
verified
Correct Answer
verified
A) people underestimate inflation.
B) people correctly estimate inflation.
C) people change to rational expectations.
D) unemployment must decrease.
E) people overestimate inflation.
Correct Answer
verified
Correct Answer
verified
A) all prices are flexible.
B) inflation is expected.
C) some prices are sticky.
D) the economy is at full-employment output.
E) conducted by Congress.
Correct Answer
verified
Correct Answer
verified
A) is when central banks purposefully choose to only stabilize money and price levels through monetary policy.
B) has a real effect on the economy in the long run.
C) is when central banks take orders from the ruling party on how to conduct monetary policy.
D) is the strategic use of monetary policy to counteract macroeconomic expansions and contractions.
E) is when central banks only use fiscal policy to try to influence the economy.
Correct Answer
verified
Correct Answer
verified
A) During the wake of the Great Recession,there were significant expansionary monetary policy interventions.
B) During the wake of the Great Recession,there were significant contractionary monetary policy interventions.
C) During the wake of the Great Recession,there was a lack of monetary policy interventions.
D) Monetary policy during the Great Recession was completely unexpected.
E) Monetary policy during the Great Recession had no impact in the short run.
Correct Answer
verified
Correct Answer
verified
A) if people fully expect inflation to occur,the effects of monetary policy are more widespread.
B) monetary policy can only have real effects on the economy if people fully expect inflation.
C) unexpected inflation cause prices to be flexible.
D) the effects of expected inflation are completely different from the effects of unexpected inflation.
E) expected inflation causes prices to become sticky.
Correct Answer
verified
Correct Answer
verified
A) turn prices from inflexible to flexible.
B) force private banks to lend out reserves.
C) make it easier for people and businesses to borrow.
D) print money.
E) steer the economy out of overexpansion.
Correct Answer
verified
Correct Answer
verified
A) increased aggregate demand and decreased short-run aggregate supply
B) low inflation and low unemployment
C) low inflation and high unemployment
D) high inflation and high unemployment
E) declining real gross domestic product (GDP) and high unemployment
Correct Answer
verified
Correct Answer
verified
A) worker is receiving a cost-of-living adjustment.
B) economy is experiencing stagflation.
C) economy is experiencing hyperinflation.
D) economy is experiencing disinflation.
E) effects of expansionary monetary policy are amplified.
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
Expansionary monetary policy increases t...View Answer
Correct Answer
verified
View Answer
A) Although there is a short-run incentive to increase the money supply,these effects wear off in the long run as prices adjust and then drive up the value of money.
B) The government has rules in place on the maximum amount the money supply can be increased in a given fiscal year.
C) Although there is a short-run incentive to increase the money supply,these effects wear off in the long run as prices adjust and then drive down the value of money.
D) Increasing the money supply is not a politically popular action and may lead to leaders of the central bank not getting reelected.
E) The short-run benefits are outweighed by the short-run costs of increases in the money supply.
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
If high inflation was expected,the Feder...View Answer
Correct Answer
verified
View Answer
A) Resource prices are not affected by inflation.
B) Resource prices are often set by lengthy contracts.
C) Resource prices are often set by governments.
D) Resource prices are not reported in the consumer price index (CPI) .
E) Resource prices are all tied to inflation.
Correct Answer
verified
Correct Answer
verified
Showing 61 - 80 of 158
Related Exams