Question 1

Critics of real business cycle theory point out each of the following as problems except

Accepted Answer

A)  in the economy as a whole, total work hours decrease because some people become unemployed, not because most individuals work less hours. 
B)  in the economy as a whole, total work hours decrease because most individuals work less hours, not because some people become unemployed. 
C)  the unemployment rate fluctuates substantially over the business cycle. 
D)  high unemployment in a recession is not a market-clearing phenomenon. 
A)  in the economy as a whole, total work hours decrease because some people become unemployed, not because most individuals work less hours. 
B)  in the economy as a whole, total work hours decrease because most individuals work less hours, not because some people become unemployed. 
C)  the unemployment rate fluctuates substantially over the business cycle. 
D)  high unemployment in a recession is not a market-clearing phenomenon.

Question 2

The questions with which Chapter 17 is concerned include each of the following except

Accepted Answer

A)  how might the macroeconomics taught two decades from now differ from the macroeconomics taught today? 
B)  what have been the principal changes in the way microeconomics is taught over the past quarter century? 
C)  what direction will macroeconomics take if the new Keynesian research program proves more successful? 
D)  how will economists in the future understand the foundations behind the power of monetary policy? 
A)  how might the macroeconomics taught two decades from now differ from the macroeconomics taught today? 
B)  what have been the principal changes in the way microeconomics is taught over the past quarter century? 
C)  what direction will macroeconomics take if the new Keynesian research program proves more successful? 
D)  how will economists in the future understand the foundations behind the power of monetary policy?

Question 3

Since at least the 1930s, the mainstream of macroeconomics

Accepted Answer

A)  has attributed the sluggishness of aggregate demand - the fact that the Phillips curve has a slope - to stickiness in wages and prices. 
B)  has attributed the sluggishness of aggregate supply - the fact that the Phillips curve is vertical - to the flexibility of wages and prices. 
C)  has attributed the sluggishness of aggregate supply - the fact that the Phillips curve has a slope - to stickiness in wages and prices. 
D)  has attributed the sluggishness of aggregate demand - the fact that the monetary policy reaction function has a slope - to stickiness in wages and prices. 
A)  has attributed the sluggishness of aggregate demand - the fact that the Phillips curve has a slope - to stickiness in wages and prices. 
B)  has attributed the sluggishness of aggregate supply - the fact that the Phillips curve is vertical - to the flexibility of wages and prices. 
C)  has attributed the sluggishness of aggregate supply - the fact that the Phillips curve has a slope - to stickiness in wages and prices. 
D)  has attributed the sluggishness of aggregate demand - the fact that the monetary policy reaction function has a slope - to stickiness in wages and prices.

Question 4

According to real business cycle theorists, hours worked will increase

Accepted Answer

A)  if the current wage increases relative to the future wage. 
B)  if the future wage increases relative to the current wage. 
C)  if the real interest rate decreases. 
D)  if labor becomes relatively unproductive. 
A)  if the current wage increases relative to the future wage. 
B)  if the future wage increases relative to the current wage. 
C)  if the real interest rate decreases. 
D)  if labor becomes relatively unproductive.

Critics of real business cycle theory point out each of the following as problems except

The questions with which Chapter 17 is concerned include each of the following except

Since at least the 1930s, the mainstream of macroeconomics

According to real business cycle theorists, hours worked will increase

Introduction to Macroeconomics

Measuring the Macroeconomy

Thinking Like an Economist

The Theory of Economic Growth

The Reality of Economic Growth: History and Prospect

Building Blocks of the Flexible-Price Model

Equilibrium in the Flexible-Price M Odel

Money, Prices, and Inflation

The Sticky-Price Income-Expenditure Framework: Consumption and the Multiplier

Investment, Net Exports, and Interest Rates: The Is Curve

The Money Market and the LM Curve

The Phillips Curve, Expectations, and Monetary Policy

Stabilization Policy

Budget Balance, National Debt, and Investment

International Economic Policy

Changes in the Macroeconomy and Changes in Macroeconomic Policy

Epilogue

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Exam 17: The Future of Macroeconomics

Critics of real business cycle theory point out each of the following as problems except

The questions with which Chapter 17 is concerned include each of the following except

Since at least the 1930s, the mainstream of macroeconomics

According to real business cycle theorists, hours worked will increase

Introduction to Macroeconomics

Measuring the Macroeconomy

Thinking Like an Economist

The Theory of Economic Growth

The Reality of Economic Growth: History and Prospect

Building Blocks of the Flexible-Price Model

Equilibrium in the Flexible-Price M Odel

Money, Prices, and Inflation

The Sticky-Price Income-Expenditure Framework: Consumption and the Multiplier

Investment, Net Exports, and Interest Rates: The Is Curve

The Money Market and the LM Curve

The Phillips Curve, Expectations, and Monetary Policy

Stabilization Policy

Budget Balance, National Debt, and Investment

International Economic Policy

Changes in the Macroeconomy and Changes in Macroeconomic Policy

Epilogue

Filters