The aggregate demand curve slopes downward because: Select one: O a. According to the monetary policy rule, the response of policymakers is to decrease the interest rate if inflation is high. O b. Individual microeconomic demand curves slope downward. O c. The price-setting behaviour of firms is embodied in the Phillips curve. O d. According to the monetary policy rule, the response of policymakers is to increase the interest rate if inflation is high.

The aggregate demand curve slopes downward because: Select one: O a. According to the monetary policy rule, the response of policymakers is to decrease the interest rate if inflation is high. O b. Individual microeconomic demand curves slope downward. O c. The price-setting behaviour of firms is embodied in the Phillips curve. O d. According to the monetary policy rule, the response of policymakers is to increase the interest rate if inflation is high.

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 workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected, Select one: O a. the interest rate will fall O b. workers will gain at the expense of firms. O . neither workers nor firms will gain because the increase in wages is fixed in the labour agreement. O d. firms will gain at the expense of workers.
In macroeconomic analysis, the assumption that potential output (Y*) is changing is a characteristic of O a. the adjustment process. O b. the national accounts model. O c. the long run. Od. the business cycle model. Oe. the short run.
Cost-push inflation occurs: O a. when there are increases in production costs. O b. when "too much money is chasing too few goods." O c. at or close to full employment. O d. because of excess total spending. 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.
The long-run Phillips curve is vertical because it is O a. consistent with the conclusion of Friedman and Phelps, but it is not consistent with the classical idea of monetary neutrality. Ob. consistent with the classical idea of monetary neutrality, but it is not consistent with the conclusion of Friedman and Phelps. Oc. consistent with both the conclusion of Friedman and Phelps and the classical idea of monetary neutrality. Od. consistent with neither the conclusion of Friedman and Phelps nor the classical idea of monetary neutrality. QUESTION 41 If there is a favorable supply shock, inflation will O a. increase and shift the short-run Phillips curve left. Ob. decrease and shift the short-run Phillips curve right. Oc. increase and shift the short-run Phillips curve right. Od. decrease and shift the short-run Phillips curve left. QUESTION 42 If there is a favorable supply shock causes, then O a. the price level decreases. To counter this a central bank would decrease the money supply.…
In general, the sacrifice ratio is smaller, the... O a. Shorter it takes to revise inflationary expectations upwards. O b. Longer it takes to revise inflationary expectations downwards. O c. Longer it takes to revise inflationary expectations upwards. O d. Shorter it takes to revise inflationary expectations downwards. e. Small the initial inflation rate.
Assume the following macroeconomic conditions in the United States and that US policy makers desire to achieve their three macro-policy goals defined in the usual way. A. Output has risen above potential output, creating a large positive output gap. B. The employment rate has risen, creating an unemployment rate of 3%. C. The inflation rate has risen to 8% per year. Which statement is CORRECT? O Output is too high; the unemployment rate is too low; and the inflation rate is too high. Output is too high; the employment rate is too low; and the inflation rate is too low. Output is too high; the employment rate is too low; and the inflation rate is too high. Output is too low; the unemployment rate is too low; and the inflation rate is too high. Output is too high; the unemployment rate is too low; and inflation rate is too low.
What type of macroeconomics presents the view that the market economy works well, that aggregate fluctuations are a natural consequence of an expanding economy, and that government intervention cannot improve the efficiency of the market economy? macroeconomics is the view that the market economy works well, that aggregate fluctuations are a natural consequence of an expanding economy, and that government intervention cannot improve the efficiency of the market economy. O A. Monetarist B. Classical OC. Keynesian O D. Long-run Classical macroeconomics A. is currently championed by Paul Krugman in his weekly column in the New York Times B. had its beginnings with the 1936 publication The General Theory of Employment, Interest, and Money C. explains how the economy performs in the face of a major slump in spending D. fell into disrepute during the Great Depression Click to select your answer. MacBook Air DII DD 000 F11 F12 F7 F8 F9 F10 esc F4 F5 F6 F1 F2 F3 & ! @ # $ 5 7 8 delete 1 2 3 {…
Actual inflation is the sum of three separate components: .. O a. Accelerated, expected and output gap inflation. O b. Validated, expected and output gap inflation. O c. Output gap, expected and supply-shock inflation. O d. Accelerated, demand and supply inflation. O e. Output gap, wage-push and demand inflation.
All of the following statements are generally true EXCEPT: OA. The rate of change in nominal wages is positively correlated with the rate of change in other money prices. OB. The rate of change in nominal wages is negatively correlated with the unemployment rate. OC. The output gap is negatively correlated with the inflation rate. OD. The unemployment rate is negatively correlated with the deviation of aggregate economic activity from trend. OE. The inflation rate is positively correlated with the deviation of aggregate economic activity from trend.
Each of the following is a determinant of demand except O a. lastes. O b. expectations. Oc production technology. O d. the prices of related goods. 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.
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Back in the 1980s, the Ronald Reagan Administration reduced corporate taxes, which many economists believed increased production and profit for American companies and created economic growth. This statement BEST supports the view of: Select one: O a. Marginalists O b. Keynesian economists O c. Classical economists O d. Supply-side economists O e. Monetarists