Question 1

According to the Bank of Canada,

Accepted Answer

A)  less aggregate output is preferred to more. 
B)  low unemployment is preferred to higher unemployment. 
C)  preferences over inflation depend on the real interest rate. 
D)  low real interest is preferred to high real interest rates. 
E)  slow money wage growth is preferred to faster. 
A)  less aggregate output is preferred to more. 
B)  low unemployment is preferred to higher unemployment. 
C)  preferences over inflation depend on the real interest rate. 
D)  low real interest is preferred to high real interest rates. 
E)  slow money wage growth is preferred to faster.

Question 2

According to the Central Bank Learning Story,if the central bank tries to permanently increase real output above its original trend it will

Accepted Answer

A)  succeed in its real output goal, but at the cost of a constant, permanently higher rate of inflation. 
B)  succeed in its real output goal, but at the cost of a permanently accelerating rate of inflation. 
C)  fail in its real output goal, but will not increase the rate of inflation. 
D)  fail in its real output goal and increase the equilibrium rate of inflation. 
E)  fail in its real output goal and achieve permanently higher rates of inflation. 
A)  succeed in its real output goal, but at the cost of a constant, permanently higher rate of inflation. 
B)  succeed in its real output goal, but at the cost of a permanently accelerating rate of inflation. 
C)  fail in its real output goal, but will not increase the rate of inflation. 
D)  fail in its real output goal and increase the equilibrium rate of inflation. 
E)  fail in its real output goal and achieve permanently higher rates of inflation.

Question 3

Deviation of GDP from trend appear to be

Accepted Answer

A)  positively related to the inflation rate over short periods of time. 
B)  positively related to the behaviour of the inflation rate over long periods of time. 
C)  negatively related to the inflation rate over short periods of time. 
D)  negatively related to the behaviour of the inflation rate over long periods of time. 
E)  unrelated to the behaviour of the inflation rate over long periods of time. 
A)  positively related to the inflation rate over short periods of time. 
B)  positively related to the behaviour of the inflation rate over long periods of time. 
C)  negatively related to the inflation rate over short periods of time. 
D)  negatively related to the behaviour of the inflation rate over long periods of time. 
E)  unrelated to the behaviour of the inflation rate over long periods of time.

Question 4

For recent Canadian inflation history,the central central bank commitment story dealt with

Accepted Answer

A)  the federal government committed to lowering taxes and increasing government spending. 
B)  the inability of the central bank to maintain low interest rates. 
C)  high inflation due to the inability of the central bank to commit to a policy of not generating surprise inflation. 
D)  the central bank not being convinced that there was a Phillips curve. 
E)  the central bank not concerned about the economic welfare of private citizens. 
A)  the federal government committed to lowering taxes and increasing government spending. 
B)  the inability of the central bank to maintain low interest rates. 
C)  high inflation due to the inability of the central bank to commit to a policy of not generating surprise inflation. 
D)  the central bank not being convinced that there was a Phillips curve. 
E)  the central bank not concerned about the economic welfare of private citizens.

Question 5

What are two observations about empirical Phillips curve relations in Canada?

Accepted Answer

The Phillips curve has a positive correl

Question 6

In Hong Kong,the commitment mechanism that was implemented dealt with

Accepted Answer

A)  lowering interest rates by implementing expansionary monetary policy. 
B)  appreciating its domestic currency by lowering interest rates. 
C)  improving its trade balance by raising the value of its domestic currency. 
D)  targeting the unemployment rate problem by expanding government spending. 
E)  reducing inflation by implementing a fixed exchange rate enforced by a currency board. 
A)  lowering interest rates by implementing expansionary monetary policy. 
B)  appreciating its domestic currency by lowering interest rates. 
C)  improving its trade balance by raising the value of its domestic currency. 
D)  targeting the unemployment rate problem by expanding government spending. 
E)  reducing inflation by implementing a fixed exchange rate enforced by a currency board.

Question 7

The Phillips curve relationship in the Canadian data began to disintegrate in the

Accepted Answer

A)  1930s. 
B)  1940s. 
C)  1950s. 
D)  1960s. 
E)  1980s. 
A)  1930s. 
B)  1940s. 
C)  1950s. 
D)  1960s. 
E)  1980s.

Question 8

A)W.Phillips' study of unemployment and inflation in the U.K.specifically looked at the empirical relationship between the unemployment rate and the

Accepted Answer

A)  rate of change in prices. 
B)  rate of change in nominal wages. 
C)  rate of change in real wages. 
D)  level of nominal wages. 
E)  aggregate output 
A)  rate of change in prices. 
B)  rate of change in nominal wages. 
C)  rate of change in real wages. 
D)  level of nominal wages. 
E)  aggregate output

Question 9

According to the Central Bank Learning Story,a central bank behaving optimally will

Accepted Answer

A)  choose the point where its indifference curve is just tanget to the Phillips curve. 
B)  ignore the Phillips Curve relationship. 
C)  choose the highest indifference curve that is still on the consumer's budget line. 
D)  only exploit the Phillips Curve in the long-run. 
E)  choose the point where its indifference curves are just tanget to the consumer's. 
A)  choose the point where its indifference curve is just tanget to the Phillips curve. 
B)  ignore the Phillips Curve relationship. 
C)  choose the highest indifference curve that is still on the consumer's budget line. 
D)  only exploit the Phillips Curve in the long-run. 
E)  choose the point where its indifference curves are just tanget to the consumer's.

Question 10

According to the Central Bank Learning Story,the central bank

Accepted Answer

A)  always prefers lower inflation and higher output. 
B)  always prefers lower inflation and sometimes prefers higher output. 
C)  sometimes prefers lower inflation and always prefers higher output. 
D)  sometimes prefers lower inflation and sometimes prefers higher output. 
E)  always prefers lower inflation and lower output. 
A)  always prefers lower inflation and higher output. 
B)  always prefers lower inflation and sometimes prefers higher output. 
C)  sometimes prefers lower inflation and always prefers higher output. 
D)  sometimes prefers lower inflation and sometimes prefers higher output. 
E)  always prefers lower inflation and lower output.

Question 11

The original work on the application of the time inconsistency problem in macroeconomics is due to

Accepted Answer

A)  Milton Friedman and Robert Lucas. 
B)  Michael Hutchinson and Carl Walsh. 
C)  Finn Kydland and Edward Prescott 
D)  Robert Barro and Donald Gordon. 
E)  Milton Friedman and anna Schwartz 
A)  Milton Friedman and Robert Lucas. 
B)  Michael Hutchinson and Carl Walsh. 
C)  Finn Kydland and Edward Prescott 
D)  Robert Barro and Donald Gordon. 
E)  Milton Friedman and anna Schwartz

According to the Bank of Canada,

According to the Central Bank Learning Story,if the central bank tries to permanently increase real output above its original trend it will

Deviation of GDP from trend appear to be

For recent Canadian inflation history,the central central bank commitment story dealt with

What are two observations about empirical Phillips curve relations in Canada?

In Hong Kong,the commitment mechanism that was implemented dealt with

The Phillips curve relationship in the Canadian data began to disintegrate in the

A)W.Phillips' study of unemployment and inflation in the U.K.specifically looked at the empirical relationship between the unemployment rate and the

According to the Central Bank Learning Story,a central bank behaving optimally will

According to the Central Bank Learning Story,the central bank

The original work on the application of the time inconsistency problem in macroeconomics is due to

Introduction

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

Filters

Exam 18: Money, Inflation, and Banking: A Deeper Look

According to the Bank of Canada,

According to the Central Bank Learning Story,if the central bank tries to permanently increase real output above its original trend it will

Deviation of GDP from trend appear to be

For recent Canadian inflation history,the central central bank commitment story dealt with

What are two observations about empirical Phillips curve relations in Canada?

In Hong Kong,the commitment mechanism that was implemented dealt with

The Phillips curve relationship in the Canadian data began to disintegrate in the

A)W.Phillips' study of unemployment and inflation in the U.K.specifically looked at the empirical relationship between the unemployment rate and the

According to the Central Bank Learning Story,a central bank behaving optimally will

According to the Central Bank Learning Story,the central bank

The original work on the application of the time inconsistency problem in macroeconomics is due to

Introduction

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

Filters