Question 1

A trade-off between aggregate output and inflation

Accepted Answer

A)  is theoretically possible, but has never been observed in practice. 
B)  may exist in the short run, but not in the long run. 
C)  exists in both the short run and the long run. 
D)  is part of the Keynesian sticky wage model. 
E)  may exist in the long run, but not in the short run. 
A)  is theoretically possible, but has never been observed in practice. 
B)  may exist in the short run, but not in the long run. 
C)  exists in both the short run and the long run. 
D)  is part of the Keynesian sticky wage model. 
E)  may exist in the long run, but not in the short run.

Question 2

New Keynesian Theory

Accepted Answer

A)  specifies financial markets as the primary cause of business cycles. 
B)  includes microeconomic foundations and does not rely on sticky wages or prices. 
C)  relies on sticky wages and prices but does not include microeconomic foundations. 
D)  uses the same microeconomic foundations as other macro models. 
E)  specifies shocks to technology cause business cycles. 
A)  specifies financial markets as the primary cause of business cycles. 
B)  includes microeconomic foundations and does not rely on sticky wages or prices. 
C)  relies on sticky wages and prices but does not include microeconomic foundations. 
D)  uses the same microeconomic foundations as other macro models. 
E)  specifies shocks to technology cause business cycles.

Question 3

Which of the following is a fundamental question of macroeconomics?

Accepted Answer

A)  What causes sustained economic growth? 
B)  How should a labour contract be structured? 
C)  How should governments be elected? 
D)  What causes the health care industry to prosper? 
E)  What is the effect of penalties on crime? 
A)  What causes sustained economic growth? 
B)  How should a labour contract be structured? 
C)  How should governments be elected? 
D)  What causes the health care industry to prosper? 
E)  What is the effect of penalties on crime?

A trade-off between aggregate output and inflation

New Keynesian Theory

Which of the following is a fundamental question of macroeconomics?

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure 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 Consumption–Savings 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

New Keynesian Economics: Sticky Prices

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 1: Introduction

A trade-off between aggregate output and inflation

New Keynesian Theory

Which of the following is a fundamental question of macroeconomics?

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure 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 Consumption–Savings 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

New Keynesian Economics: Sticky Prices

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