1."Money is neutral" means that either an expansionary or a contractionary monetary policy:Group of answer choicesa. will make society neither more nor less moral than it was before.b. will not change output in the short run.c. will not change output in the medium run.d. will not change the price level in the short run.e. will not change the price level in the medium run.2. For this question, assume that the economy is initially operating at the natural level of output. When the central bankcontrols the interest rates, an increase in the price target will cause:Group of answer choicesa. no change in the real wage in the medium run.b. an increase in investment in the medium run.c. a reduction in the interest rate in the medium run.d. no change in the nominal wage in the medium run.3. Suppose the central bank controls the interest rate. Using the AS-AD diagram and assuming that the economy isinitially operating at the natural level of output, an increase in taxes will cause which of the following?Group of answer choicesa. a reduction in output and no change in the aggregate price level in the short runb. a reduction in employment and no change in the nominal wage in the short runc. an increase in investment in the medium rund. an increase in the aggregate price level, no change in output and no change in the interest rate in the medium run4. In the aggregate supply relation, the current price level depends upon:Group of answer choicesa. the markup, m.b. monetary policy.c. fiscal policy.d. consumer confidence.e. all of the above5. If there were perfect competition, then m (in the price setting equation P = (1+m)W), would equalGroup of answer choicesa. Wb. Pc. 1d. 0.5e. none of the above6. The natural rate of unemployment is the rate of unemployment:Group of answer choicesa. that occurs when the money market is in equilibrium.b. where the markup of prices over costs is zero.c. where the markup of prices over costs is equal to its historical value.d. that occurs when both the goods and financial markets are in equilibrium.e. consistent with both the wage-setting and price-setting equations when the expected and actual price level are thesame.7. At the current level of output, suppose the actual price level is less than the price level that individuals expect (i.e., P+ <pet).We know that:Group of answer choicesa. output is currently below the natural level of output.b. the interest rate will tend to rise as the economy adjusts to this situation.c. the nominal wage will tend to increase as individuals revise their expectations of the price level.d. any subsequent reduction in the aggregate price level will cause an increase in the real money supply and a rightwardshift in the aggregate demand curve.e. none of the above

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1."Money is neutral" means that either an expansionary or a contractionary monetary polic Group of answer choices a. will make society neither more nor less moral than it was before. b. will not change output in the short run. c. will not change output in the medium run. d. will not change the price level in the short run. e. will not change the price level in the medium run.

1."Money is neutral" means that either an expansionary or a contractionary monetary polic Group of answer choices a. will make society neither more nor less moral than it was before. b. will not change output in the short run. c. will not change output in the medium run. d. will not change the price level in the short run. e. will not change the price level in the medium run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What are the two goals of monetary policy? Oa. Maximum employment and low and stable inflation Ob. Maximum employment and high and stable inflation Oc. Minimum employment and stable inflation Od. Controlled government spending and low taxes
QUESTION 19 According to liquidity-preference theory, in which circumstance would the money-supply curve shift left? a. if the interest rate increased b. only if the Bank of Canada chose to decrease the money supply c. if government spending decreased d. if the price level increased
19
Economics If the Fed wants to move from a point on the short-run Phillips curve representing high unemployment and low inflation to a point representing lower unemployment and higher inflation, then it should A.use contractionary monetary policy. B.use expansionary fiscal policy. C.use expansionary monetary policy. D.use a combination of expansionary monetary and fiscal policies.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Money neutrality is the idea that a. any policy can have intended and unintended consequences b. in the long-run, markets will clear and return the economy to equilibrium regardless of what happens to the money supply. c. there are two types of variables, nominal and real, and only nominal variables are affected by the money supply. d. nominal and real interest rates are unrelated. During the middle of the 20th century, income inequality in developed economies generally fell. The reason for this was a. average incomes didn't rise but welfare systems redistributed income. b. that returns to assets held by high income earners fell steadily. c. incomes overall rose but taxation systems were slowly made more and more progressive. d. a rise in average income with incomes of the bottom deciles rising faster than the top.
I need a graph for A money supply and B. Interest rate soon as possible
4. Which of the following characteristics of money is associated with the base good being divisible? a. Unit of account b. Store of value c. Medium of exchange 5. Which of the following characteristics of money is associated with the base good being easily portable? a. Unit of account b. Store of value c. Medium of exchange 6. The Federal Reserve's dual mandate is that monetary policy should accomplish An effective allocation of capital and stable property rights b. A well-capitalized banking system and an empowered democracy c. A stable return on the stock market and reasonable bond yields d. Price stability and full employment а.
11. Which policy tool involves the federal reserve setting a short-term interest rate to lend directly to financial institutions? a. The fed funds rate b. The discount rate c. The interest rate paid on excess reserves d. The rate of required reserves 12. Suppose the federal reserve announces a policy of purchasing short-term bonds from the financial system. This policy is an example of a. Expansionary monetary policy through open market operations designed to decrease the federal funds rate b. Contractionary monetary policy through open market operations designed to increase the federal funds rate