Question
Offered Price $25.00

Intermediate Macroeconomics HW 5 MC Questions 2015

Question # 00074497
Subject: Economics
Due on: 06/11/2015
Posted On: 06/05/2015 12:08 PM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
15718
Tutorials:
15379
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

1.

The positive relationship between the price level and the amount of output means that the aggregate supply curve is:

A.

horizontal.

B.

upward-sloping.

C.

vertical.

D.

downward-sloping.

2.

In the sticky-price model, if the fraction of firms in the economy that set prices in advance rises, then it would be expected that the aggregate supply curve:

A.

shifts upward.

B.

shifts downward.

C.

becomes steeper.

D.

becomes flatter.

3.

Which of the following will shift the aggregate supply curve up to the left?

A.

an increase in the price level

B.

a decrease in the level of output

C.

an increase in the expected price level

D.

a decrease in the price level

4.

Exhibit: AD–AS Shifts
.jpg" alt="http://bcs.worthpublishers.com/webpub/Economics/mankiw8_bridge/testbank_images/chapter_14_aggregate_supply_and_the_short-run_tradeoff/r1-1.png">

Reference: Ref 14-1


(Exhibit: ADAS Shifts) Starting from long-run equilibrium at A with output equal to .jpg" alt="http://bcs.worthpublishers.com/webpub/Economics/mankiw8_bridge/testbank_images/chapter_14_aggregate_supply_and_the_short-run_tradeoff/q28-1.png"> and the price level equal to P1, if there is an unexpected monetary contraction that shifts aggregate demand from AD1 to AD3, then the short-run nonneutrality of money is represented by the movement from:

A.

A to B

B.

A to G

C.

A to C

D.

A to D

5.

Exhibit: AD–AS Shifts
.jpg" alt="http://bcs.worthpublishers.com/webpub/Economics/mankiw8_bridge/testbank_images/chapter_14_aggregate_supply_and_the_short-run_tradeoff/r1-1.png">

Reference: Ref 14-1


(Exhibit: ADAS Shifts) Starting from long-run equilibrium at A with output equal to .jpg" alt="http://bcs.worthpublishers.com/webpub/Economics/mankiw8_bridge/testbank_images/chapter_14_aggregate_supply_and_the_short-run_tradeoff/q29-1.png"> and the price level equal to P1, if there is an unexpected monetary contraction that shifts aggregate demand from AD1 to AD3, then the long-run neutrality of money is represented by the movement from:

A.

A to B

B.

A to G

C.

A to C

D.

A to D

6.

Starting from the natural level of output, an unexpected monetary contraction will cause output and the price level to ______ in the short run; and in the long run the expected price level will ______, causing the level of output to return to the natural level.

A.

increase; increase

B.

increase; decrease

C.

decrease; decrease

D.

decrease; increase

7.

The Phillips curve represents the trade-off between:

A.

inflation and expected inflation.

B.

output and unemployment.

C.

inflation and unemployment.

D.

output and interest rates.

8.

The modern Phillips curve posits that the inflation rate depends on three forces. On which of the following does it NOT depend?

A.

the level of business inventories

B.

expected inflation

C.

cyclical unemployment

D.

supply shocks

9.

If expected inflation rises, the Phillips curve:

A.

shifts upward.

B.

shifts downward.

C.

becomes steeper.

D.

becomes flatter.

10.

The proportion of real GDP that must be forgone in order to reduce the inflation rate by one percentage point is called:

A.

opportunity cost.

B.

wage deflation.

C.

demand-pull inflation.

D.

sacrifice ratio.

11.

In the country of Stabilia, the monetary authorities particularly dislike inflation. The current inflation of 5 percent is considered rampant. If the sacrifice ratio in Stabilia is five, the percentage of a year's GDP that has to be forgone to bring inflation down to 1 percent is:

A.

0.8 percent.

B.

1.25 percent.

C.

20 percent.

D.

25 percent.

12.

The approach that assumes that people optimally use all the available information to forecast the future is called:

A.

the sacrifice ratio.

B.

expected inflation.

C.

adaptive expectations.

D.

rational expectations.

13.

When people believe that policymakers are credibly committed to lowering inflation, the sacrifice ratio will be:

A.

lower than when people don't believe that policymakers are credible.

B.

higher than when people don't believe that policymakers are credible.

C.

the same as when people don't believe that policymakers are credible.

D.

either higher or lower than when people don't believe that policymakers are credible.

14.

If the equation for a country's Phillips curve is ? = 0.02 – 0.8(u – 0.05), where ? is the rate of inflation and u is the unemployment rate, what is the short-run inflation rate when unemployment is 4 percent (0.04)?

A.

above 2 percent (0.02)

B.

below 2 percent (0.02)

C.

2 percent (0.02)

D.

–2 percent (–0.02)

15.

Assume that an economy has the Phillips curve ? = ?–1 – 0.5(u – 0.06). Then the natural rate of unemployment is:

A.

0.5.

B.

0.12.

C.

0.06.

D.

0.03.

16.

Assume that an economy has the Phillips curve ? = ?–1 – 0.5(u – 0.06). How many percentage-point-years of cyclical unemployment are needed to reduce inflation by 5 percentage points?

A.

20

B.

10

C.

5

D.

2.5

17.

Suppose we write the Keynesian consumption function as C = K + cY where K > 0 and 0 < c < 1
The average propensity to consume can then be written as:

A.

K/Y + c/Y.

B.

K/Y.

C.

c.

D.

K/Y + c.

18.

On the basis of the Keynesian consumption function, it was thought that the economy would experience "secular stagnation." Why?

A.

The secularly falling marginal propensity to consume would lead to ever lower savings, lower investment, and lower income growth.

B.

The secularly falling average propensity to consume would lead to ever lower savings, lower investment, and lower income growth.

C.

The secularly falling marginal propensity to consume would lead to ever higher savings, lower demand, and lower income.

D.

The secularly falling average propensity to consume would lead to ever higher savings, lower demand, and lower income.

19.

When consumers are deciding how much to consume today and how much to save for the future, they are limited by their:

A.

intertemporal budget constraint.

B.

discount factor.

C.

indifference curves.

D.

marginal rate of substitution.

20.

Fruit flies live for only two days. What must be true about a fruit fly's intertemporal budget constraint?

A.

The sum of consumption over both days has to equal the sum of income over both days.

B.

The sum of discounted consumption over both days has to equal the sum of discounted income over both days.

C.

The sum of discounted consumption over both days has to equal the sum of income over both days.

D.

The sum of consumption over both days has to equal the sum of discounted income over both days.

21.

Exhibit: Budget Constraint
.jpg" alt="http://bcs.worthpublishers.com/webpub/Economics/mankiw8_bridge/testbank_images/chapter_16_consumption/r1-1.png">

Reference: Ref 16-1


(Exhibit: Budget Constraint) Based on the graph, if Y1 and Y2 represent income in period one and period two, respectively, at which point along the budget constraint would a consumer be a borrower in period one?

A.

A

B.

B

C.

C

D.

D

22.

Exhibit: Budget Constraint
.jpg" alt="http://bcs.worthpublishers.com/webpub/Economics/mankiw8_bridge/testbank_images/chapter_16_consumption/r1-1.png">

Reference: Ref 16-1


(Exhibit: Budget Constraint) Based on the graph, if Y1 and Y2 represent income in period one and period two, respectively, r is the interest rate, and the consumer chooses to consume combination A on the budget constraint, what will be the level of consumption in period two, C2?

A.

Y1(1 + r) + Y2

B.

Y1 + Y2/(1 + r)

C.

Y1/(1 + r) + Y2

D.

Y1 + Y2(1 + r)

23.

A consumer's optimal allocation of consumption over two periods is given by:

A.

the point on the budget constraint that touches the lowest indifference curve.

B.

any intersection of an indifference curve with the budget constraint.

C.

the point that gives the highest total consumption over the two periods.

D.

the point on the budget constraint that touches the highest indifference curve.

24.

In a two-period consumption model in which the consumer is initially saving, a rise in the real interest rate would cause consumption in the first period to:

A.

rise because of the income effect.

B.

fall because of the substitution effect.

C.

remain constant because the income and substitution effects cancel each other.

D.

be undetermined without more information about sizes of the income and substitution effects.

25.

In a two-period consumption model, a rise in the income of the second period would cause consumption in the first period to:

A.

rise because of the income effect.

B.

fall because of the substitution effect.

C.

remain constant because the income and substitution effects cancel each other.

D.

be undetermined without more information about sizes of the income and substitution effects.

26.

Friedman's permanent-income hypothesis asserts that the marginal propensity to consume out of income is:

A.

one.

B.

zero.

C.

higher for permanent income than it is for temporary income.

D.

lower for permanent income than it is for temporary income.

Tutorials for this Question
Available for
$25.00

Intermediate Macroeconomics HW 5 MC Questions 2015 Answers

Tutorial # 00069197
Posted On: 06/05/2015 12:09 PM
Posted By:
Best Tutors for school students, college students expertden
Expert tutors with experiences and qualities
Questions:
15718
Tutorials:
15379
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview …Macroeconomics…
Attachments
Intermediate_Macroeconomics_HW_5_MC_Questions_2015_Answers.docx (57.02 KB)
Preview: if xxxxx is xx unexpected monetary xxxxxxxxxxx that shifts xxxxxxxxx demand xxxxxxxxxxxxxxxxxxx xxxx the xxxxxxxx neutrality of xxxxx is represented xx the xxxxxxxx xxxxx PRIVATE xxxxxxxxxx NAME=\"QID_F901F18824BEEBF3106A2920E2D10000\" VALUE=\"A\" xxxxxxxxxxxxxxxxxxx MACROBUTTON HTMLDirect x A xx x PRIVATE xxxxxxxxxx NAME=\"QID_F901F18824BEEBF3106A2920E2D10000\" VALUE=\"B\" xxxxxxxxxxxxxxxxxxx MACROBUTTON HTMLDirect x A xx x PRIVATE xxxxxxxxxx NAME=\"QID_F901F18824BEEBF3106A2920E2D10000\" VALUE=\"C\" xxxxxxxxxxxxxxxxxxx MACROBUTTON HTMLDirect x A xx x PRIVATE xxxxxxxxxx NAME=\"QID_F901F18824BEEBF3106A2920E2D10000\" VALUE=\"D\" xxxxxxxxxxxxxxxxxxx MACROBUTTON HTMLDirect x A xx xx Starting xxxx the natural xxxxx of output, xx unexpected xxxxxxxx xxxxxxxxxxx will xxxxx output and xxx price level xx ______ xx xxx short xxxx and in xxx long run xxx expected xxxxx xxxxx will xxxxxxx causing the xxxxx of output xx return xx xxx natural xxxxx PRIVATE "<INPUT xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx VALUE=\"A\" TYPE=\"RADIO\">" xxxxxxxxxxx HTMLDirect x xxxxxxxxx increase xxxxxxx "<INPUT NAME=\"QID_393CCC241CAF3E734EF7C6139B2D0000\" xxxxxxxxxxx TYPE=\"RADIO\">" MACROBUTTON xxxxxxxxxx B xxxxxxxxx xxxxxxxx PRIVATE xxxxxxxxxx NAME=\"QID_393CCC241CAF3E734EF7C6139B2D0000\" VALUE=\"C\" xxxxxxxxxxxxxxxxxxx MACROBUTTON HTMLDirect x decrease; xxxxxxxx xxxxxxx "<INPUT xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx VALUE=\"D\" TYPE=\"RADIO\">" xxxxxxxxxxx HTMLDirect D xxxxxxxxx increase7 xxx xxxxxxxx curve xxxxxxxxxx the trade-off xxxxxxxx PRIVATE "<INPUT xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx VALUE=\"A\" xxxxxxxxxxxxxxxxxxx xxxxxxxxxxx HTMLDirect x inflation and xxxxxxxx inflation PRIVATE xxxxxxxxxx NAME=\"QID_B5521E3A2C1311B33D2C004BA11D0000\" xxxxxxxxxxx xxxxxxxxxxxxxxxxxxx MACROBUTTON xxxxxxxxxx B output xxx unemployment PRIVATE xxxxxxxxxx NAME=\"QID_B5521E3A2C1311B33D2C004BA11D0000\" xxxxxxxxxxx xxxxxxxxxxxxxxxxxxx MACROBUTTON xxxxxxxxxx C inflation xxx unemployment PRIVATE xxxxxxxxxx NAME=\"QID_B5521E3A2C1311B33D2C004BA11D0000\" xxxxxxxxxxx xxxxxxxxxxxxxxxxxxx MACROBUTTON xxxxxxxxxx D output xxx interest rates x The xxxxxx xxxxxxxx curve xxxxxx that the xxxxxxxxx rate depends xx three xxxxxx xx which xx the following xxxx it NOT xxxxxxx PRIVATE xxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx VALUE=\"A\" xxxxxxxxxxxxxxxxxxx MACROBUTTON HTMLDirect x the level xx business xxxxxxxxxxx xxxxxxx "<INPUT xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx VALUE=\"B\" TYPE=\"RADIO\">" xxxxxxxxxxx HTMLDirect B xxxxxxxx inflation xxxxxxx xxxxxxxxxx NAME=\"QID_25979283B7E0AAF629BA649A476A0000\" xxxxxxxxxxx TYPE=\"RADIO\">" MACROBUTTON xxxxxxxxxx C cyclical xxxxxxxxxxxx PRIVATE xxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx VALUE=\"D\" xxxxxxxxxxxxxxxxxxx MACROBUTTON HTMLDirect x supply shocks9 xx expected xxxxxxxxx xxxxxx the xxxxxxxx curve: PRIVATE xxxxxxxxxx NAME=\"QID_C0D0B925857A8102199F0A064A480000\" VALUE=\"A.....
Purchase this Tutorial @ $25.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
Loading...