Suppose that in two consecutive quarters nominal GDP falls while real GDP rises. This MOST likely implies that: 

a.unemployment rate have increased from quarter 1 to quarter 2.

b.prices have risen from quarter 1 to quarter 2. 

c.prices have fallen from quarter 1 to quarter 2.

d.the economy is in a recession.

 Which of the following is the LEAST accurate about the Okun’s Law?

a.It shows the relationship between quarterly changes in unemployment and quarterly changes in real GDP.

b.It shows the relationship between quarterly changes in unemployment and quarterly changes in inflation.

c.Actual GDP must grow as rapidly as potential GDP just to keep the unemployment rate from rising.

d.The Okun coefficient can change over time. 

 Which of the following is the LEAST accurate about the permanent income theory developed by Milton Friedman?

a. Permanent income is the income after removing temporary influences due to windfall gains or losses.

b. Consumption responds primarily to permanent income.

c. Disposable income is current income.

d. Consumption responds primarily to both permanent and current income.

 Which of the following statement is the LEAST accurate about the Keynesian multiplier model and the AS-AD model?

a.When the economy is operating at its potential, changes in the AD curve would primarily affect price level, leaving real GDP the same.

b. In the AS-AD mode, the multiplier model only works at an output level that is beyond its potential.

c. Within the range of the horizontal AS curve, any shifts in the AD curve will affect output without affecting the price level.

d. In the AS-AD model, the AS curve is horizontal before GDP reaches its potential.

Which of the following factors would be the LEAST likely to shift the aggregate demand (AD) curve to the right?

a. Advances in technology.

b. An increase in interest rate.

c. A decrease in tax rate.

d. An increase in government spending. 

 Which of the following is the MOST likely to happen when the economy is in a liquidity trap?

a. Central bank’s open-market operations have large and significant impact upon interest rates and financial markets.

b. The real interest rate approaches zero.

c. Demand for money becomes infinitely inelastic with respect to interest rate.

d. Central bank is unable to use normal monetary transmission mechanism to stimulate the economy.

Which of the following is the LEAST accurate about “quantitative easing” as a monetary policy tool?

a. Quantitative easing expands the central bank’s balance sheet as the central bank spends money on purchasing securities.

b. Quantitative easing is a conventional policy tool in which the central bank provides additional liquidity for the economy and the financial system.

c. Treasury securities were purchased by the Federal Reserve during the quantitative easing. 

d. Quantitative easing has been used in rare cases in which policy interest rate is close to 0%.

 Which of the following is NOT in line with the classical approach to macroeconomics?

a. Government is expected to play a big role in mitigating market failure.

b. Prices are assumed to adjust reasonably quickly to achieve equilibrium in all markets.

c. Output is determined by aggregate supply (AS).

d. Business cycles are temporary and self-correcting.

Which of the following is the LEAST accurate about the federal funds rate?

a.The Fed can significantly influence or even control this interest rate through open market operations.

b.It is also called the discount rate by which the Fed lends money to commercial banks.

c.Banks borrow from each other at this rate to make sure that they hold sufficient reserves at the Fed.

d.The interest rate that depository institutions pay each other for loans, usually overnight.

 Which of the following is NOT consistent with the line of thinking in monetarism?

a. In the short run, monetary changes may affect real output with long and variable lags.

b. In the long run, money is neutral.

c. Prices and output are determined solely by the money supply.

d. The central bank should not set the growth of the money supply at a fixed rate.

 Which of the following is NOT included in the current account?

a. exports and imports of merchandise

b. exports and imports of services

c. dividend payments by foreign subsidiaries to their foreign parent companies

d. purchases of government bonds

QUESTION 21

1. According to the flow approach to the exchange rate determination, which of the following is the MOST likely to lead to appreciation in U.S. dollar with respect to Chinese yuan?
2. a. A decrease in U.S. demand for U.S. goods and services.
3. b. An increase in U.S. demand for Chinese goods and services.
4. c. An increase in China’s demand for U.S. goods and services.
5. d. A decrease in China’s demand for U.S. goods and services.

SuperTutor

(15)

Status NEW Posted 17 May 2017 12:05 AM My Price 13.00

-----------

Attachments

file 1494981275-Solutions file.docx preview (56 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------on�-----------�th-----------is -----------web-----------sit-----------e. ----------- H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;----------- -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer