Exam 15: Inflation: Phillips Curves and Neo-Fisherism

In the two-period SOE model with production, suppose that the real interest rate if there were no trade is greater than the world real interest rate. If the economy is initially closed, and then Becomes open

In the two-period SOE model with production, an increase in labour supply

In the two period SOE model with production, if there is good news about future total factor productivity

In the two-period model with default, if the nation defaults on its debts in the future period

Absorption can be defined as

International trade has increased for which of the following reasons?

In a two-period SOE model with production, an increase in current domestic total factor productivity

In a two-period SOE model with production, an anticipated future increase in domestic total factor productivity

For Canada

In the two-period SOE model, if the current account surplus is initially positive and the real interest rate decreases, then

Suppose goods produced domestically and abroad are identical. The small open economy (SOE) imposes a tariff t on imported goods, and the rest of the world imposes a tariff t on goods exported From the SOE. Then

Current account deficits may not be undesirable for the domestic economy as it

GATT is

In a two-period model, as long as wealth effects are small, an increase in the world real interest rate

The national present-value budget constraint states that

In the two-period SOE model with production, an increase in current taxes

If current taxes increase, then

In the two-period SOE model, a decrease in current income

In the two-period SOE model with production, if the SOE closes off trade with the rest of the world

In a two-period model with default, if the market interest rate is low, then