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Question
A positive supply shock causes ________ to ________.A. aggregate demand; increase
B. aggregate demand; decrease
C. short-run aggregate supply; decrease
D. short-run aggregate supply; increase
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
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B. U.S. Treasury.
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D. Bureau of Monetary Affairs.
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B. rapidly growing money supplies.
C. falling money supplies.
D. constant money supplies.
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B. banks.
C. over-the-counter markets.
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Banks, savings and loan associations, mutual savings banks, and credit unions
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Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
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An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
A. IS; right
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Q:
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A. a Taylor rule.
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C. a policy rule advocated by monetarists.
D. advocated by activists.
Q:
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B. the Lucas critique.
C. public choice theory.
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
B. advocates of discretionary policies' criticisms of rational expectations models are not well-founded.
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Q:
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C. output will be lower.
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E. both B and C.
Q:
If the economy suffers a permanent negative supply shock because there is an increase in regulations that permanently reduce the level of potential output, then
A. potential output falls.
B. the long-run aggregate supply curve shifts leftward.
C. the short-run aggregate supply curve shifts upward.
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Q:
With the policy rate set at zero, the rise in expected inflation will lead to a ________ in the real interest
rate, which will cause investment spending and aggregate output to ________.
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A. The worldwide decline in demand led to a collapse of Chinese exports.
B. Instead of relying solely on the economy's self-correcting mechanism, much more aggressive fiscal expansions than those of the U.S. (in addition to a substantial monetary easing) served to shift the AD curve back to general equilibrium relatively quickly.
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E. None of the above.
Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Q:
The Baumol-Tobin analysis suggests that an increase in the brokerage fee for buying and selling bonds will cause the demand for money to ________ and the demand for bonds to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Q:
________ in the foreign interest rate causes the demand for domestic assets to shift to the right and the domestic currency to ________, everything else held constant.
A. An increase; appreciate
B. An increase; depreciate
C. A decrease; appreciate
D. A decrease; depreciate
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A. right; appreciate
B. right; depreciate
C. left; appreciate
D. left; depreciate