Securitization is defined as: a. disallowing the use of collateral for loans. b. creating incentives for firms to protect proprietary information. c. making it more difficult to enter the United States illegally. d. bolstering defense spending. e. lumping large numbers of financial instruments together and selling pieces to different types of investors. QUESTION 46 In the Phillips curve A, - , +ais: a. a demand shock b. a measure of the sensitivity of inflation to demand conditions c. a permanent price trend d. fiscal policy shock e. an inflation shock QUESTION 47 ccording to the original Keynesian school, the primary source of the business cycle is a. from unexpected fluctuations in aggregate demand and the fact that today's money wage rates were negotiated. dates...... thus past rational expectations of the current price level influence the current wage rate. Ob. supply side shocks from technological change. c. FED policy with regards to monetary policy (money supply changes) and its effect on aggregate demand. d. the instability of investment and consumption spending by investors and consumers. e. from unexpected fluctuations in aggregate demand in a rare divergence from normal rational expectations.

Securitization is defined as: a. disallowing the use of collateral for loans. b. creating incentives for firms to protect proprietary information. c. making it more difficult to enter the United States illegally. d. bolstering defense spending. e. lumping large numbers of financial instruments together and selling pieces to different types of investors. QUESTION 46 In the Phillips curve A, - , +ais: a. a demand shock b. a measure of the sensitivity of inflation to demand conditions c. a permanent price trend d. fiscal policy shock e. an inflation shock QUESTION 47 ccording to the original Keynesian school, the primary source of the business cycle is a. from unexpected fluctuations in aggregate demand and the fact that today's money wage rates were negotiated. dates...... thus past rational expectations of the current price level influence the current wage rate. Ob. supply side shocks from technological change. c. FED policy with regards to monetary policy (money supply changes) and its effect on aggregate demand. d. the instability of investment and consumption spending by investors and consumers. e. from unexpected fluctuations in aggregate demand in a rare divergence from normal rational expectations.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the government uses contractionary monetary policy to reduce inflation from 9 to 6 percent. If people have adaptive expectations, than Inflation rate (%) 12 10 9 8 6 4 0 4 Long run Phillips curve Natural rate 5 E Short run Phillips curve 9 Unemployment rate (%) Unemployment will rise to 8 percent in the short run. The natural rate will permanently increase to 8 percent The economy will remain stuck at point E1. Unemployment will remain at 6 percent as the inflation rate falls.
2
In the RBC model, if there are no changes to long run economic growth (gy is constant), and velocity has not changed (ΔV = 0), what is a likely cause of decreased inflation (π)? a.Quantitative Easing b.Quantitative Tightening c.Expansionary Monetary Policy d.Increased producer confidence e.All the above
The Phillips curve is the relationship between (a) Change in GDP from potential and inflation. (b) GDP and unemployment. (c) The percent change in GDP and inflation. (d) The percent change in GDP and unemployment.
The main problem of a government constantly using monetary policy to reduce unemployment, as guided bythe Phillips curve is:(a) people eventually update their expectations, shifting the Phillips curve to the right, worsening theinflation-unemployment trade-off(b) people increase their demand for money very fast, rendering monetary policy more difficult(c) eventually hitting the zero lower bound, where monetary policy is not effective anymore(d) being exposed to a negative supply shock(e) none of the above is a problem
Phillips Curve Question: The Phillips Curve illustrates the relationship between: A) Inflation and government spending B) Inflation and unemployment C) Interest rates and inflation D) Economic growth and inflation
Which of the following statements is false? a. There is no evidence of a negative correlation between central bank independenceand inflation. b. Housing starts are one of the leading indicators for the business cycle. c. In general, inflation, GDP growth, and unemployment have cyclical patterns. d. Inflation tends to be positively correlated with output gap.
Which problem should ALWAYS be addressed by the Fed or by the government as a matter of priority when there is a temporary supply shock?Group of answer choices 1It is impossible to know which of the two should be addressed in all cases. 2The output problem. 3The inflation problem. 4The unemployment problem.
The economy of Djibulistan is initially in long-run equilibrium. Then the CentralBank of Djibulistan increases the money supply.a. Assuming unexpected inflation as a result of the above-mentioned policy,explain any changes in output, unemployment, and inflation that arecaused by the monetary expansion. Explain your answer and conclusionsusing three graphs: IS-LM, AD-AS, and the Phillips curve. b. Assuming instead that resulting, inflation is expected, explain any changesin output, unemployment, and inflation that are caused by the monetaryexpansion. Explain your answer and conclusions using three graphs: ISLM, AD-AS, and the Phillips curve.