I’m not sure with my answers. All of questions are multiple choice and these are from “Macroeconomics fourth edition by R. Glenn Hubbard, Anthony Patrick O’Brien”
Questions are from Ch16. Fiscal Policy, Ch17. Inflation, unemployment, and federal reserve policy, Ch18. Macroeconomics in an Open Economy, and Cp19. The international financial systme. If you can finish it by 8:40 pm today, I will give you $20 more as a tip.
All 18 questions.
an increase in unemployment insurance payments during a recession an increase in income tax receipts with rising income during an expansion the tax cuts passed by Congress in 2001 to combat the recession a decrease in food stamps issued during an expansion or boom |
federal; state and local state and local; federal state and local; state local; state |
grants to state and local governments. defense spending. transfer payments. government purchases. |
buy Treasury securities. conduct expansionary fiscal policy. decrease government purchases. decrease the discount rate. |
increase; more increase; less decrease; more decrease; less |
the interest rate increases, consumption declines, and investment spending declines. the interest rate decreases, consumption declines, and investment spending declines. the interest rate increases, consumption increases, and investment spending increases. the interest rate decreases, consumption increases, and investment spending increases. |
falls because of programs such as unemployment insurance and Medicaid. rises because of programs such as unemployment insurance and Medicaid. falls because of the progressive income tax system. rises because of the progressive income tax system. |
unrelated. positively related. negatively related. unaffected by monetary policy. |
the unemployment rate that exists when the economy is at potential GDP the unemployment rate that exists when the economy is at a trough in a business cycle an unemployment rate of 0% any unemployment rate that is above the inflation rate |
Monetary policy can only shift the long-run Phillips curve to the left. Monetary policy shifts the long-run Phillips curve to the right or left, depending on whether monetary policy is expansionary or contractionary. Monetary policy can only shift the long-run Phillips curve to the right. Monetary policy has no impact on the long-run Phillips curve. |
the inflation rate the unemployment rate the growth rate of real GDP in the economy the natural rate of unemployment |
higher interest rates. increased rates of inflation. an upward shift in the short-run Phillips curve. a leftward shift in the long-run Phillips curve. |
As long as the Fed’s announcement is credible, workers and firms will increase their consumption and investment spending, which will increase aggregate demand and inflation. As long as the Fed’s announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation. If the Fed’s announcement is not credible, workers and firms will not expect inflation to fall so they will reduce their consumption and investment spending, which will increase aggregate demand and reduce inflation. Workers and firms will incorporate the increase in interest rates into their expectations of inflation, and they will expect inflation to rise as a result of Fed’s policy announcement. |
a decrease in unemployment. an increase in unemployment. an increase in deflation. an increase in inflation. |
If foreign holdings of U.S. dollars increase, holding all else constant, the balance on the U.S. current account will increase. the balance on the U.S. capital account will increase. the U.S. balance of trade will increase. |
goods only. services only. both goods and services. neither goods not services. |
Demand for dollars will increase, and supply of dollars will decrease. Demand for dollars will increase, and supply of dollars will increase. Demand for dollars will decrease, and supply of dollars will increase. Demand for dollars will decrease, and supply of dollars will decrease. |
Interest rates and exchange rates increase. Interest rates increase and exchange rates decrease. Interest rates decrease and exchange rates increase. Interest rates and exchange rates decrease. |