Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

1. For a closed economy, the IS curve describes short-run movements in an economy via which of the following?

a.   Interest rate Investment Output    

b.   Interest rate Investment Output    

c.   Tax rate Consumption Output    

d.   Interest rate Investment Output    

e.   Tax rate Government expenditure Output

2. A key difference between the long run and short run models is the assumption _____________ in the short run

a.   of zero inflation    

b.   of perfect price flexibility    

c.   that unemployment always equals its natural rate    

d.   that the economy never deviates from its long-run equilibrium    

e.   of sticky inflation (inflexible prices)

3. If prices are sticky and the Fed raises the nominal interest rate (ceteris paribus), __________ and __________ in the short run.

a.   the real interest rate remains constant; real output remains at potential    

b.   the real interest rate falls; short-run real output falls    

c.   the unemployment rate rises; short-run real output rises    

d.   the real interest rate rises; short-run real output falls    

e.   the real interest rate falls; current real output falls

4. According to the Phillips curve, if current output is above potential output (a boom),

a.   inflation rises.    

b.   inflation falls.    

c.   unemployment rises.    

d.   inflation is constant.    

e.   prices fall.

5. According to the Phillips curve, in general during a recession

a.   inflation rises.    

b.   prices fall.    

c.   unemployment falls.    

d.   inflation is constant.    

e.   inflation falls.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91233298

Have any Question?


Related Questions in Microeconomics

Question until recently marie worked as an program manager

Question: Until recently Marie worked as an program manager, earning $45,000 annually. Then she opened a Peruvian restaurant downtown. At the end of the first year, her books showed total revenues of $200,000 and total c ...

Question in 2001 and 2002 political opinion was bitterly

Question: In 2001 and 2002, political opinion was bitterly divided between the Republicans, who wanted to cut high marginal personal income tax rates and offer retroactive benefits to corporations by canceling the altern ...

Question in the case of a binding price ceiling why is the

Question: In the case of a binding price ceiling, why is the price below the equilibrium price? Isn't it possible for suppliers to increase price (to hit the demand curve) at the quantity traded without losing consumers? ...

Question you have been shopping around for a student loan

Question: You have been shopping around for a student loan and you have seen some wide variance between interest rates. You need to borrow $30,000 for 4 years. A loan from your local bank comes with 7% per year interest, ...

Question in baseball a pitcher faces a batter if hit the

Question: In baseball, a pitcher faces a batter. If hit, the coming pitch will produce the gamewinning run, if not the team loses. There are two types of pitch-a fastball and a curve. If the batter swings at the fastball ...

Question assume that workers whose incomes are less than

Question: Assume that workers whose incomes are less than $10,000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $5000, whether or not he or she earns any income. For all e ...

Question a how is full employment defined and why does the

Question: (A) How is full employment defined, and why does the full-employment rate of unemployment keep changing? (B) In December 1998, the BLS reported the following unemployment rates: 1. Unemployed over 15 weeks 1.1% ...

Question australian are considered generally under-insured

Question: Australian are considered generally under-insured (from a personal insurance perspective). Discuss what this statement means and what are your views on how this can be addressed. The response must be typed, sin ...

Question following are some compounding and discounting

Question: Following are some compounding and discounting problems: a. Say $177 grows to $189 over a year at simple interest, that is, one annual payment and no compounding within the year. What is the implied interest ra ...

Question in an effort to reduce energy costs a major

Question: In an effort to reduce energy costs, a major university has installed more efficient lights as well as automatic sensors that turn the lights off when no movement is present in a room. Historically, the cost of ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As