multiple choice questions Multiple Choice Questions1. In the short run, when prices are partially sticky, the observed general equilibriumrelationship between the output gap and prices is best described as:A. There is no relationship between output gap and prices.B. The relationship between output gap and prices depends on the type of shocks affectingthe economy.C. A positive output gap will always be associated with an increase in prices.D. None of the above is correct.2. Using the AS-AD model with partial sticky prices, what is the effect on labour N₁ andwages Wt of an increase in At?A. Both N, and we increaseB. Both N and Wt decreaseC. Nt increases and we do not changeD. There is not enough information to conclude whether N and we increase or decrease3. Which statement is correct?A. The financial accelerator amplifies the output effects of supply shocksB. The financial accelerator amplifies the output effects of demand shocks.C. The financial accelerator amplifies the price effects of supply shocksD. A & B4. In the New-Keynesian model where government expenditure is financed through taxationonly, if government expenditure increases by 100, which of the following is true?A. Income will increase by 100 as the fiscal multiplier is 1.B. Income will increase by more than 100 as the fiscal multiplier is greater than 1.C. Income will not change as the increase in government expenditure would crowd outprivate consumption.D. Income will increase, but we can't say by how much.5. What are the implications of the ZLB in our New-Keynesian model?A. Negative shocks are amplified by the flat shape of the LM curve, in which real interestrates cannot go below to accommodate demand.B. Negative shocks are mitigated by the flat shape of the LM curve, in which real interestrates cannot go above π+1to accommodate demand.C. Negative shocks are amplified by the flat shape of the LM curve, in which real interestrates cannot go below -π+1 to accommodate demand.D. Negative shocks are amplified by the vertical shape of the LM curve, in which real interestrates cannot go below -+₁to accommodate demand.

ZLB stands for zero lower bound, referring to the lower limit of nominal interest rates, set to…

1. In the short run, when prices are partially sticky, the observed general equilibrium relationship between the output gap and prices is best described as: A. There is no relationship between output gap and prices. B. The relationship between output gap and prices depends on the type of shocks affecting the economy. C. A positive output gap will always be associated with an increase in prices. D. None of the above is correct.

1. In the short run, when prices are partially sticky, the observed general equilibrium relationship between the output gap and prices is best described as: A. There is no relationship between output gap and prices. B. The relationship between output gap and prices depends on the type of shocks affecting the economy. C. A positive output gap will always be associated with an increase in prices. D. None of the above is correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Relates to how the customer views the ability of theproduct to meet his/her objectives.
CSHIARACTERISTICS OF A GOOD COMPENSATION PLAN
How supplier affect the supply of goods to the public market?
Answer this question
Sarah purchased an individual medical expense insurance policy that included a $250 deductible and an 80-20 coinsurance provision. She required medical care and the cost of the care provided was $40,750. How much of this amount must Sarah pay and how much will her insurer pay? How would your answer change if Sarah's policy included a $3,000 out-of- pocket limit that applied to coinsurance payments? . HINT (Coinsurance is calculated after you pay your deductible)
U=x+y find MRSxy
Why do you think there is a need to use communication strategies?
What is critical thinking and explain how it could be helpful for you as a student in Criminal Justice.
Defin screening.
the state of wellness industry in Pakistan” Out of the ten sectors of wellness industry, you have to highlight two areas 1. Traditional and complementary medicine 2. Spa economy