27.3 APPENDIX 27.1 Evaluating Empirical Evidence: The Debate over the Importance of Money in Economic Fluctuations 1) Evidence that examines whether one variable has an effect on another by simply looking directly at the relationship between the two variables is ________. A) reduced-form evidence B) organizational-model evidence C) direct-model evidence D) structural-model evidence 2) Evidence that is based on a variable having its effect on another variable through channels rather than a direct effect is known as ________. A) indirect-model evidence B) organizational-model evidence C) reduced-form evidence D) structural-model evidence 3) A ________ model is one that describes how ________. A) structural; the economy works B) structural; prices change C) simple; the economy works D) analytical; prices change 4) Using ________ we can predict how ________ changes may affect the link between M and Y. A) a structural model; institutional B) a structural model; political C) reduced form evidence; institutional D) reduced form evidence; political 5) On the evening news you hear of a scientific study that directly links premature births to cigarette smoking. This is an example of ________. A) direct-model evidence B) informed voter-model evidence C) structural-model evidence D) reduced-form evidence 6) The monetarist-Keynesian debate on the importance of monetary policy is unresolved because monetarists and Keynesians focus on two different types of evidence that generate conflicting conclusions. Monetarists tend to focus on ________. A) structural-model evidence, while Keynesians focus on reduced-form evidence B) reduced-form evidence, while Keynesians focus on structural-model evidence C) reduced-form evidence, while Keynesians focus on direct-model evidence D) structural-model evidence, while Keynesians focus on direct-model evidence 7) The channels through which monetary policy affects economic activity are called the ________ of monetary policy. A) transmission mechanisms B) flow mechanisms C) distribution mechanisms D) allocational mechanisms 8) A model that is composed of many equations that show the channels through which monetary and fiscal policy affect aggregate output and spending is called a ________. A) reduced-form model B) median-voter model C) informed median-voter model D) structural model 9) Monetarists directly study the link between money and economic activity using ________. A) structural models B) reduced-form models C) scientific models D) experimental models 10) The monetarist reduced-form evidence does not specify the working of the economy and thus is considered to be a ________. A) scientific model B) open model C) black box D) black hole
27.3 APPENDIX 27.1 Evaluating Empirical Evidence: The Debate over the Importance of Money in Economic Fluctuations
1) Evidence that examines whether one variable has an effect on another by simply looking directly at the relationship between the two variables is ________.
A) reduced-form evidence
B) organizational-model evidence
C) direct-model evidence
D) structural-model evidence
2) Evidence that is based on a variable having its effect on another variable through channels rather than a direct effect is known as ________.
A) indirect-model evidence
B) organizational-model evidence
C) reduced-form evidence
D) structural-model evidence
3) A ________ model is one that describes how ________.
A) structural; the economy works
B) structural; prices change
C) simple; the economy works
D) analytical; prices change
4) Using ________ we can predict how ________ changes may affect the link between M and Y.
A) a structural model; institutional
B) a structural model; political
C) reduced form evidence; institutional
D) reduced form evidence; political
5) On the evening news you hear of a scientific study that directly links premature births to cigarette smoking. This is an example of ________.
A) direct-model evidence
B) informed voter-model evidence
C) structural-model evidence
D) reduced-form evidence
6) The monetarist-Keynesian debate on the importance of
A) structural-model evidence, while Keynesians focus on reduced-form evidence
B) reduced-form evidence, while Keynesians focus on structural-model evidence
C) reduced-form evidence, while Keynesians focus on direct-model evidence
D) structural-model evidence, while Keynesians focus on direct-model evidence
7) The channels through which monetary policy affects economic activity are called the ________ of monetary policy.
A) transmission mechanisms
B) flow mechanisms
C) distribution mechanisms
D) allocational mechanisms
8) A model that is composed of many equations that show the channels through which monetary and fiscal policy affect
A) reduced-form model
B) median-voter model
C) informed median-voter model
D) structural model
9) Monetarists directly study the link between money and economic activity using ________.
A) structural models
B) reduced-form models
C) scientific models
D) experimental models
10) The monetarist reduced-form evidence does not specify the working of the economy and thus is considered to be a ________.
A) scientific model
B) open model
C) black box
D) black hole
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