Question 1

In a two-period model with production,a temporary increase in domestic government spending

Accepted Answer

A)  increases domestic output and increases the current account surplus. 
B)  increases domestic output and decreases the current account surplus. 
C)  decreases domestic output and increases the current account surplus. 
D)  decreases domestic output and decreases the current account surplus. 
A)  increases domestic output and increases the current account surplus. 
B)  increases domestic output and decreases the current account surplus. 
C)  decreases domestic output and increases the current account surplus. 
D)  decreases domestic output and decreases the current account surplus.

Question 2

In a two-period model,holding everything else constant,an increase in current taxes

Accepted Answer

A)  unambiguously increases the current account surplus. 
B)  unambiguously decreases the current account surplus. 
C)  has an uncertain effect on the current account surplus. 
D)  has no effect on the current account surplus, as long as Ricardian equivalence holds. 
A)  unambiguously increases the current account surplus. 
B)  unambiguously decreases the current account surplus. 
C)  has an uncertain effect on the current account surplus. 
D)  has no effect on the current account surplus, as long as Ricardian equivalence holds.

Question 3

A small open economy is an economy

Accepted Answer

A)  in which both imports and exports are less than 5% of GDP. 
B)  whose firms and consumers are individually, but not collectively price takers. 
C)  whose firms and consumers are collectively, but not individually price takers. 
D)  whose firms and consumers are individually and collectively price takers. 
A)  in which both imports and exports are less than 5% of GDP. 
B)  whose firms and consumers are individually, but not collectively price takers. 
C)  whose firms and consumers are collectively, but not individually price takers. 
D)  whose firms and consumers are individually and collectively price takers.

In a two-period model with production,a temporary increase in domestic government spending

In a two-period model,holding everything else constant,an increase in current taxes

A small open economy is an economy

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

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters

Exam 15: International Trade in Goods and Assets

In a two-period model with production,a temporary increase in domestic government spending

In a two-period model,holding everything else constant,an increase in current taxes

A small open economy is an economy

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

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters