Question 1

According to the new classical economics,changes in monetary policy will only impact GDP if:

Accepted Answer

A) they impact the price level. 
B) they are unpredictable. 
C) people have perfect information about these shocks. 
D) None of the above. 
A) they impact the price level. 
B) they are unpredictable. 
C) people have perfect information about these shocks. 
D) None of the above.

Question 2

Both Keynesians and real business cycle proponents believe that tax cuts increase output

Accepted Answer

A) and both agree it does this through increasing aggregate demand. 
B) but Keynesians believe it does this through increasing aggregate demand and not aggregate supply. 
C) but Keynesians believe it does this through increasing aggregate supply and not aggregate demand. 
D) and both agree it does this through increasing aggregate supply. 
A) and both agree it does this through increasing aggregate demand. 
B) but Keynesians believe it does this through increasing aggregate demand and not aggregate supply. 
C) but Keynesians believe it does this through increasing aggregate supply and not aggregate demand. 
D) and both agree it does this through increasing aggregate supply.

Question 3

The classically-based models (classical,new classical,monetarist,real business cycle)all agree that

Accepted Answer

A) markets always clear. 
B) monetary policy can affect output in the short-run but not the long-run. 
C) changes in aggregate drive most changes in output. 
D) stabilization policy is ineffective. 
E) None of the above 
A) markets always clear. 
B) monetary policy can affect output in the short-run but not the long-run. 
C) changes in aggregate drive most changes in output. 
D) stabilization policy is ineffective. 
E) None of the above

Question 4

What two theories argue that fluctuations in output are determined by aggregate supply? Discuss the role of monetary policy in each of these models.

Accepted Answer

The real business cycle theory and the c

Question 5

The assumption of constant velocity is a critical component of the

Accepted Answer

A) monetarist model. 
B) classical model. 
C) real business cycle model. 
D) new classical model. 
E) all of the above. 
A) monetarist model. 
B) classical model. 
C) real business cycle model. 
D) new classical model. 
E) all of the above.

Question 6

Which macroeconomic model dominated macroeconomic analysis from the early post-World War II era until the late 1960s?

Accepted Answer

A) The monetarist model 
B) The Keynesian model 
C) The classical model 
D) The new classical model 
E) None of the above 
A) The monetarist model 
B) The Keynesian model 
C) The classical model 
D) The new classical model 
E) None of the above

Question 7

Which of the following is the most likely cause of most recessions according to the Keynesian model?

Accepted Answer

A) a fall in productivity. 
B) an increase in taxation and government spending. 
C) a fall in expected profits. 
D) a rise in the price of oil. 
E) a fall in the money supply. 
A) a fall in productivity. 
B) an increase in taxation and government spending. 
C) a fall in expected profits. 
D) a rise in the price of oil. 
E) a fall in the money supply.

According to the new classical economics,changes in monetary policy will only impact GDP if:

Both Keynesians and real business cycle proponents believe that tax cuts increase output

The classically-based models (classical,new classical,monetarist,real business cycle)all agree that

What two theories argue that fluctuations in output are determined by aggregate supply? Discuss the role of monetary policy in each of these models.

The assumption of constant velocity is a critical component of the

Which macroeconomic model dominated macroeconomic analysis from the early post-World War II era until the late 1960s?

Which of the following is the most likely cause of most recessions according to the Keynesian model?

Introduction

Measurement of Macroeconomic Variables

Classical Macroeconomics I: Output and Employment

Classical Macroeconomics II: Money,prices,and Interest

Keynesian System I: the Role of Aggregate Demand

Keynesian System II: Money,interest,and Income

Keynesian System III: Policy Effects in the Is-Lm Model

Keynesian System Iv: Aggregate Supply and Demand

The Monetarist Counterrevolution

Output,inflation,and Unemployment: Alternative Views

New Classical Economics

Real Business Cycles and New Keynesian Economics

Exchange Rates and the International Monetary System

Monetary and Fiscal Policy in the Open Economy

Money,the Banking System,and Interest Rates

Optimal Monetary Policy

Fiscal Policy

Policies for Intermediate-Run Growth

Long-Run Economic Growth: Origins of the Wealth of Nations

Filters

Exam 13: Macroeconomic Models:a Summary

According to the new classical economics,changes in monetary policy will only impact GDP if:

Both Keynesians and real business cycle proponents believe that tax cuts increase output

The classically-based models (classical,new classical,monetarist,real business cycle)all agree that

What two theories argue that fluctuations in output are determined by aggregate supply? Discuss the role of monetary policy in each of these models.

The assumption of constant velocity is a critical component of the

Which macroeconomic model dominated macroeconomic analysis from the early post-World War II era until the late 1960s?

Which of the following is the most likely cause of most recessions according to the Keynesian model?

Introduction

Measurement of Macroeconomic Variables

Classical Macroeconomics I: Output and Employment

Classical Macroeconomics II: Money,prices,and Interest

Keynesian System I: the Role of Aggregate Demand

Keynesian System II: Money,interest,and Income

Keynesian System III: Policy Effects in the Is-Lm Model

Keynesian System Iv: Aggregate Supply and Demand

The Monetarist Counterrevolution

Output,inflation,and Unemployment: Alternative Views

New Classical Economics

Real Business Cycles and New Keynesian Economics

Exchange Rates and the International Monetary System

Monetary and Fiscal Policy in the Open Economy

Money,the Banking System,and Interest Rates

Optimal Monetary Policy

Fiscal Policy

Policies for Intermediate-Run Growth

Long-Run Economic Growth: Origins of the Wealth of Nations

Filters