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Question 12 ptsThe best explanation of why the aggregate deman.docx
- 1. Question 1 2 pts The best explanation of why the aggregate demand curve has a negative slope is that The best explanation of why the aggregate demand curve has a negative slope is that Flag this Question Question 2 2 pts Transactions velocity Transactions velocity Flag this Question Question 3 2 pts In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be
- 2. Flag this Question Question 4 2 pts According to the new classical view, when the actual price level is greater than the expected price level According to the new classical view, when the actual price level is greater than the expected price level Flag this Question Question 5 2 pts Business cycles Business cycles Flag this Question Question 6 2 pts In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices, In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,
- 3. Flag this Question Question 7 2 pts In the new Keynesian expression for the price level, c represents In the new Keynesian expression for the price level, c represents Flag this Question Question 8 2 pts The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is Flag this Question Question 9 2 pts In the new Keynesian approach, an increase in the nominal money supply In the new Keynesian approach, an increase in the nominal money supply
- 4. Flag this Question Question 10 2 pts In the new Keynesian approach, an increase in the nominal money supply affects output by In the new Keynesian approach, an increase in the nominal money supply affects output by Flag this Question Question 11 2 pts During the years from 1964 to 1969, inflation increased in the United States During the years from 1964 to 1969, inflation increased in the United States Flag this Question Question 12 2 pts The expression for velocity derived from Keynes's liquidity preference theory is The expression for velocity derived from Keynes's liquidity preference theory is
- 5. Flag this Question Question 13 2 pts Which of the following expressions is correct? Which of the following expressions is correct? Flag this Question Question 14 2 pts Holding everything else constant, the increased use of credit cards in recent years probably Holding everything else constant, the increased use of credit cards in recent years probably Flag this Question Question 15 2 pts The simultaneous equilibrium of the money, nonmoney asset, and goods markets is known as The simultaneous equilibrium of the money, nonmoney asset, and goods markets is known as
- 6. Flag this Question Question 16 2 pts Historical evidence suggests that the predictions of the real business cycle view are Historical evidence suggests that the predictions of the real business cycle view are Flag this Question Question 17 2 pts Milton Friedman and Anna Schwartz believe that their evidence indicates that money growth causes output fluctuations because they discovered that Milton Friedman and Anna Schwartz believe that their evidence indicates that money growth causes output fluctuations because they discovered that Flag this Question Question 18 2 pts According to New Keynesians, why does an expected change in the money supply affect output in the short run? According to New Keynesians, why does an expected change in the money supply affect output in the short run?
- 7. Flag this Question Question 19 2 pts Ben Bernanke and Alan Blinder found evidence that money is Ben Bernanke and Alan Blinder found evidence that money is Flag this Question Question 20 2 pts According to Friedman, the opportunity cost of holding money is determined by all of the following EXCEPT According to Friedman, the opportunity cost of holding money is determined by all of the following EXCEPT Flag this Question Question 21 2 pts In the new classical view, whether changes in the nominal money supply affect output in the short run depends on whether In the new classical view, whether changes in the nominal money supply affect output in the short run depends on whether
- 8. Flag this Question Question 22 2 pts The long-run Phillips curve illustrates The long-run Phillips curve illustrates Flag this Question Question 23 2 pts Whom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about his anti-inflation resolve? Whom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about his anti-inflation resolve? Flag this Question Question 24 2 pts When output exceeds its full-employment level, When output exceeds its full-employment level, Flag this Question
- 9. Question 25 2 pts Economists believe that the most serious costs of inflation arise from Economists believe that the most serious costs of inflation arise from Flag this Question Question 26 2 pts What does the coefficient a in the new classical expression for short-run aggregate supply represent? What does the coefficient a in the new classical expression for short-run aggregate supply represent? Flag this Question Question 27 2 pts Which of the following statements is correct? Which of the following statements is correct? Flag this Question
- 10. Question 28 2 pts A decrease in the price level will lead to A decrease in the price level will lead to Flag this Question Question 29 2 pts Which of the following is a key assumption of Irving Fisher's quantity theory of money demand? Which of the following is a key assumption of Irving Fisher's quantity theory of money demand? Flag this Question Question 30 2 pts Which of the following is NOT included in aggregate demand? Which of the following is NOT included in aggregate demand? Flag this Question Question 31 2 pts In order to buy in 2006 a bundle of goods that cost $100 in
- 11. 1965, you would need roughly In order to buy in 2006 a bundle of goods that cost $100 in 1965, you would need roughly Flag this Question Question 32 2 pts According to the real business cycle model, the economy's short-run aggregate supply curve is According to the real business cycle model, the economy's short-run aggregate supply curve is Flag this Question Question 33 2 pts Inflation that is lower than expected redistributes wealth from Inflation that is lower than expected redistributes wealth from Flag this Question Question 34 2 pts If the nominal interest rate on saving is 12% and the expected inflation rate is 6%, what is the percentage reduction in real interest income resulting from a tax of 25%?
- 12. If the nominal interest rate on saving is 12% and the expected inflation rate is 6%, what is the percentage reduction in real interest income resulting from a tax of 25%? Flag this Question Question 35 2 pts Most economists believe that the aggregate supply curve is Most economists believe that the aggregate supply curve is Flag this Question Question 36 2 pts According to Keynes, the demand for real balances is best expressed by which of the following equations? According to Keynes, the demand for real balances is best expressed by which of the following equations? Flag this Question Question 37 2 pts Economists who back the use of rules by the Fed believe that they would result in
- 13. Economists who back the use of rules by the Fed believe that they would result in Flag this Question Question 38 2 pts Keynes referred to the effect of portfolio allocation decisions on the demand for money as the Keynes referred to the effect of portfolio allocation decisions on the demand for money as the Flag this Question Question 39 2 pts The typical firm will find that its payoff to reducing price increases after the announcement of a disinflation policy The typical firm will find that its payoff to reducing price increases after the announcement of a disinflation policy Flag this Question Question 40 2 pts Which of the following statements is correct? Which of the following statements is correct?
- 14. Flag this Question Question 41 2 pts Which of the following statements is true concerning the velocity of M1? Which of the following statements is true concerning the velocity of M1 ? Flag this Question Question 42 2 pts Which of the following statements is correct? Which of the following statements is correct? Flag this Question Question 43 2 pts Which of the following statements is correct? Which of the following statements is correct?
- 15. Flag this Question Question 44 2 pts If the coefficient a in the new classical expression for short-run aggregate supply were equal to zero, If the coefficient a in the new classical expression for short-run aggregate supply were equal to zero, Flag this Question Question 45 2 pts An increase in the money supply will result in a lower exchange rate because An increase in the money supply will result in a lower exchange rate because Flag this Question Question 46 2 pts Money's convenience yield is Money's convenience yield is
- 16. Flag this Question Question 47 2 pts In the new Keynesian view a decline in consumer confidence that leads to a shift left in the AD curve In the new Keynesian view a decline in consumer confidence that leads to a shift left in the AD curve Flag this Question Question 48 2 pts Milton Friedman first proposed his explanation of money demand in Milton Friedman first proposed his explanation of money demand in Flag this Question Question 49 2 pts Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to
- 17. Flag this Question Question 50 2 pts In the new Keynesian view, a disinflation policy In the new Keynesian view, a disinflation policy