Question

56. Over time, the flattening and shifting inward of the traditional Phillips Curve suggests that: (a)...

56. Over time, the flattening and shifting inward of the traditional Phillips Curve suggests that: (a) the relationship between inflation and unemployment is stronger than ever; (b) a 1% change in the inflation is now associated with smaller changes than before in the unemployment rate; (c) every unemployment rate is now associated with a lower inflation rate than previously; (d) the U.S. now has an R* much higher than 1%.

57. According to the modern Phillips Curve, current inflation statistically is the summation of: (a) the real inflation rate and inflation expectations; (b) the previous period’s inflation and the product of short-run real economic growth and the sensitivity of inflation to it; (c) productivity growth and growth in the labor force; (d) labor compensation and productivity growth.

58. Almost always, the normal Treasury yield curve tends to: (a) be unaffected by monetary policy; (b) be monotonically upward sloping; (c) demonstrate that as time to maturity increases, expected yields tend to decline: (d) be affected by inflation expectations.

59. All things remaining the same, the yield on a five-year Treasury note can be expected to revert to which level? (a) the Fed’s 2% inflation target; (b) the level of inflation expectations over a 5-year period; (c) the average expected yield on Treasury securities 1, 2, 3, 4, and 5 years from maturity; (d) the S&P 500 dividend yield.

60. Which of the following is NOT a lesson to draw from the work of the Federal Reserve under Chairman Volcker when combatting stagflation? (a) fiscal policy is a critical complement to monetary policy when fighting high inflation rates; (b) choking off the supply of bank reserves can strangle money supply growth; (c) the process of strangling money supply growth reduces inflation expectations and eventually brings down long-term interest rates; (d) lower long-term interest rates would help to stimulate demand for the most interest-rate sensitive components of the economy.

61. In response both to Great Financial Crisis and the Covid-19 Crisis, the Federal Reserve: (a) performed reverse repurchase agreements daily; (b) engaged in permanent open market operations that expanded the Fed’s asset holdings; (c) sold Treasury securities and sold mortgage-backed securities; (d) increased its federal funds target range to between 2.00% and 2.25%.

Homework Answers

Answer #1

For Ans1; option 'b' is correct. because a flatter curve suggests that the economical activities have less effect on inflation.

For ans2; option 'b' is correct because modern philips curve means that current inflation is affected by the lagged inflation, the expected future inflation and a measure of aggregate marginal cost.

For ans3, option 'b' is correct as normal yield curve suggests that short-term rate of interest is usually lower than long-term rates.

For ans4, option 'c' is correct.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Over time, the flattening and shifting inward of the traditional Phillips Curve suggests that: (a)...
1. Over time, the flattening and shifting inward of the traditional Phillips Curve suggests that: (a) the relationship between inflation and unemployment is stronger than ever; (b) a 1% change in the inflation is now associated with smaller changes than before in the unemployment rate; (c) every unemployment rate is now associated with a lower inflation rate than previously; (d) the U.S. now has an R* much higher than 1%. 2. According to the modern Phillips Curve, current inflation statistically...
53. Which of the following is the Fed’s most important policy interest rate? (a) federal funds...
53. Which of the following is the Fed’s most important policy interest rate? (a) federal funds rate; (b) the rate on 2-year Treasury notes; (c) the rate on 10-year Treasury notes; (d) the rate on 30-year fixed-rate mortgages. 54. In which market would a bank with excess reserves attempt to sell reserves to a bank with insufficient reserves? (a) Treasury bill market? (b) federal funds market; (c) bond market; (d) NASDAQ. 55. When compared with monetarist theory, Keynesian theory places...
51. Which statement about the Federal Open Market Committee is untrue? (a) the Secretary of Treasury...
51. Which statement about the Federal Open Market Committee is untrue? (a) the Secretary of Treasury always is a voting member of the Committee on monetary policy decisions; (b) the President of the New York Fed, by tradition, always is a voting member on policy matters; (c) the Committee formulates, but does not implement, monetary policy; (d) its policy decisions do not require a consensus among voting members. 52. An open market operation designed to add reserves to the banking...
54. In which market would a bank with excess reserves attempt to sell reserves to a...
54. In which market would a bank with excess reserves attempt to sell reserves to a bank with insufficient reserves? (a) Treasury bill market? (b) federal funds market; (c) bond market; (d) NASDAQ. 55. When compared with monetarist theory, Keynesian theory places greater emphasis on: (a) changes in supply of money as a determinant of GDP and inflation; (b) totally discounts the role of monetary policy in determining GDP and inflation; (c) fiscal policy as a determinant of money supply...
57. According to the modern Phillips Curve, current inflation statistically is the summation of: (a) the...
57. According to the modern Phillips Curve, current inflation statistically is the summation of: (a) the real inflation rate and inflation expectations; (b) the previous period’s inflation and the product of short-run real economic growth and the sensitivity of inflation to it; (c) productivity growth and growth in the labor force; (d) labor compensation and productivity growth. 58. Almost always, the normal Treasury yield curve tends to: (a) be unaffected by monetary policy; (b) be monotonically upward sloping; (c) demonstrate...
Supply shocks move unemployment and inflation in A) the same directions, as the Phillips Curve suggests....
Supply shocks move unemployment and inflation in A) the same directions, as the Phillips Curve suggests. B) opposite directions, as the Phillips Curve suggests. C) the same directions, which is not what the Phillips Curve suggests. D) opposite directions, which is not what the Phillips Curve suggests. E) circles. When Navdeep transfers $1,000 from her savings account to her chequing account, A) M1+ increases and M2+ decreases. B) M1+ increases and M2+ is unchanged. C) M1+ increases and M2+ increases....
1. Milton Friedman argued that there is a                a.            permanent downward-sloping Phillips curve.    &
1. Milton Friedman argued that there is a                a.            permanent downward-sloping Phillips curve.                b.           temporary downward-sloping Phillips curve.                c.            temporary upward-sloping Phillips curve.                d.           permanent upward-sloping Phillips curve. 2.            Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate.                a.            is less than                b.           is greater than                c.            equals                d.           a and b...
55. When compared with monetarist theory, Keynesian theory places greater emphasis on: (a) changes in supply...
55. When compared with monetarist theory, Keynesian theory places greater emphasis on: (a) changes in supply of money as a determinant of GDP and inflation; (b) totally discounts the role of monetary policy in determining GDP and inflation; (c) fiscal policy as a determinant of money supply (d) changes in interest rates as a prerequisite to GDP growth and inflation. 56. Over time, the flattening and shifting inward of the traditional Phillips Curve suggests that: (a) the relationship between inflation...
Consider two countries: Eastland and Westland. Eastland’s long-run Phillips curve sits further to the right than does Westland’s long-run Phillips curve.
QUESTION 1Consider two countries: Eastland and Westland. Eastland’s long-run Phillips curve sits further to the right than does Westland’s long-run Phillips curve. Eastland and Westland are identical in all other ways. In particular, they have the same money supply growth rates. In the long run, compared to Westland, which of the following will we observe in Eastland?   a.lower unemployment and higher inflation.b.higher unemployment and higher inflation.c.None of the other options is correct.(Wrong)d.higher unemployment and the same rate of inflation.QUESTION 2According...
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity....
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity. B) the aggregate unemployment rate. C) the aggregate quantity of output demanded by households, businesses, the government, and the rest of the world. D) the aggregate quantity of output demanded by businesses only. 2.When the aggregate price level increases, the purchasing power of many assets falls, causing a decrease in consumer spending. This is known as the _____ effect and is a reason why...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT