mutiple chohce If the Fed wants to move from a point on the short-run Phillips c

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mutiple chohce

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 use expansionary monetary policy. use a combination of expansionary monetary and fiscal policies. use contractionary monetary policy. use expansionary fiscal policy. What is a "structural" relationship? any relationship that cannot be anticipated a relationship that depends on the size of firm investments in capital such as buildings and other structures a relationship between any two variables that is temporary a relationship that depends on the basic behavior of consumers and firms and remains unchanged over long periods The graph to the right illustrates the static AD-AS model. Suppose the economy is initially in long-run equilibrium at point A. The government decides to increase taxes. In the short-run this contractionary fiscal policy will cause: A shift from AD1 to AD2 and a movement to point B, with a higher price level and higher output. A shift from SRAS1 to SRAS2 and a movement to point A, with a higher price level and the same output. A shift from AD2 to AD1 and a movement to point D, with a lower price level and lower output. A shift from SRAS2 to SRAS1 and a movement to point B, with a lower price level and higher output. In the dynamic model of AD - AS in the figure to the right if the economy is at point A in year 1 and is expected to go to point B in year 2. Congress and the president would most likely increase government spending. increase the money supply and decrease the interest rate. raise interest rates. increase oil prices. increase taxes. Based on the following information what is the balance on the current account? Exports of goods and services = $5 billion Imports of goods and services= $3 billion Net income on investments = - $2 billion Net transfers = - $2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries = - $1 billion -$2 billion $1 billion $3 billion $4 billion Use the graph to help determine which one of the following statements regarding fluctuations in real GDP is true: Real GDP growth never falls below zero. The U.S. economy no longer experiences business cycles. During the past 50 years, the U.S. economy has experienced sharp fluctuations in real GDP similar to what occurred during the early 1930s. In the first half of the twentieth century, real GDP had much more severe swings than in the second half of the twentieth century.

Explanation / Answer

1. A
2. D
3. C
4. E
5. A
6. D

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