Question 1

The Bank of Canada's inflation target is

Accepted Answer

A) 1%. 
B) 3%. 
C) 0%. 
D) 2%. 
E) 5%. 
A) 1%. 
B) 3%. 
C) 0%. 
D) 2%. 
E) 5%.

Question 2

In the New Keynesian Rational Expectations model, when the nominal interest rate is constant forever

Accepted Answer

A) there are many equilibria, but each equilibrium satisfies the Fisher relation in the long run. 
B) there is one equilibrium, which does not satisfy the long-run Fisher relation. 
C) there are two equilibria, both of which satisfy the long-run Fisher relation. 
D) there are many equilibria, none of which satisfy the long-run Fisher relation. 
E) there is one equilibrium, and it satisfies the long-run Fisher relation. 
A) there are many equilibria, but each equilibrium satisfies the Fisher relation in the long run. 
B) there is one equilibrium, which does not satisfy the long-run Fisher relation. 
C) there are two equilibria, both of which satisfy the long-run Fisher relation. 
D) there are many equilibria, none of which satisfy the long-run Fisher relation. 
E) there is one equilibrium, and it satisfies the long-run Fisher relation.

Question 3

The Phillips curve had a recent resurgence in

Accepted Answer

A) Neo-Fisherian economics. 
B) New Monetarist economics. 
C) real business cycle theory. 
D) New Sticky economics. 
E) New Keynesian economics. 
A) Neo-Fisherian economics. 
B) New Monetarist economics. 
C) real business cycle theory. 
D) New Sticky economics. 
E) New Keynesian economics.

Question 4

In practice, the Bank of Canada

Accepted Answer

A) targets inflation, but clearly cares about real economic activity too. 
B) cares only about the path for the money supply. 
C) has a dual mandate, just like the U.S. central bank. 
D) does not target inflation. 
E) targets anticipated future inflation. 
A) targets inflation, but clearly cares about real economic activity too. 
B) cares only about the path for the money supply. 
C) has a dual mandate, just like the U.S. central bank. 
D) does not target inflation. 
E) targets anticipated future inflation.

Question 5

In the Basic New Keynesian model, if anticipated future inflation decreases

Accepted Answer

A) output falls and inflation falls. 
B) output rises and inflation rises. 
C) output stays the same and inflation falls. 
D) output rises and inflation falls. 
E) output and inflation stay the same. 
A) output falls and inflation falls. 
B) output rises and inflation rises. 
C) output stays the same and inflation falls. 
D) output rises and inflation falls. 
E) output and inflation stay the same.

Question 6

Neo-Fisherism

Accepted Answer

A) is widely accepted. 
B) involves thinking about radical new models. 
C) was introduced Keynes. 
D) was introduced by Irving Fisher in the 1920s. 
E) involves understanding how conventional macroeconomic models work. 
A) is widely accepted. 
B) involves thinking about radical new models. 
C) was introduced Keynes. 
D) was introduced by Irving Fisher in the 1920s. 
E) involves understanding how conventional macroeconomic models work.

Question 7

In the New Keynesian Rational Expectations model with a Neo-Fisherian Monetary Policy Rule

Accepted Answer

A) the central bank only undershoots its inflation target in the zero lower bound steady state. 
B) the central bank exceeds its inflation target forever. 
C) the central bank undershoots its inflation target for, at most, one period. 
D) there are two steady states. 
E) the central bank undershoots its inflation target forever. 
A) the central bank only undershoots its inflation target in the zero lower bound steady state. 
B) the central bank exceeds its inflation target forever. 
C) the central bank undershoots its inflation target for, at most, one period. 
D) there are two steady states. 
E) the central bank undershoots its inflation target forever.

Question 8

Forward guidance, in the Basic New Keynesian model, is

Accepted Answer

A) a commitment guide the public in the future. 
B) a promise concerning future inflation. 
C) always a promise of no future inflation. 
D) a promise about future fiscal policy. 
E) a guide in the forward to the central bank statement. 
A) a commitment guide the public in the future. 
B) a promise concerning future inflation. 
C) always a promise of no future inflation. 
D) a promise about future fiscal policy. 
E) a guide in the forward to the central bank statement.

The Bank of Canada's inflation target is

In the New Keynesian Rational Expectations model, when the nominal interest rate is constant forever

The Phillips curve had a recent resurgence in

In practice, the Bank of Canada

In the Basic New Keynesian model, if anticipated future inflation decreases

Neo-Fisherism

In the New Keynesian Rational Expectations model with a Neo-Fisherian Monetary Policy Rule

Forward guidance, in the Basic New Keynesian model, is

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters

Exam 14: New Keynesian Economics: Sticky Prices

The Bank of Canada's inflation target is

In the New Keynesian Rational Expectations model, when the nominal interest rate is constant forever

The Phillips curve had a recent resurgence in

In practice, the Bank of Canada

In the Basic New Keynesian model, if anticipated future inflation decreases

Neo-Fisherism

In the New Keynesian Rational Expectations model with a Neo-Fisherian Monetary Policy Rule

Forward guidance, in the Basic New Keynesian model, is

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters