the real interest rate toIf the output gap is positive, the Federal Reserve willraise; cool inflationary pressureslower; reduce unemploymentO lower; cool inflationary pressuresO raise; reduce unemployment

An output gap indicates the difference between the particular output of an economy and also the…

the real interest rate to If the output gap is positive, the Federal Reserve will O raise; cool inflationary pressures O lower; reduce unemployment O lower; cool inflationary pressures Oraise; reduce unemployment

the real interest rate to If the output gap is positive, the Federal Reserve will O raise; cool inflationary pressures O lower; reduce unemployment O lower; cool inflationary pressures Oraise; reduce unemployment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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the real interest rate to
If the output gap is positive, the Federal Reserve will
raise; cool inflationary pressures
lower; reduce unemployment
O lower; cool inflationary pressures
O raise; reduce unemployment

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Suppose there is a simultaneous fiscal expansion and monetary contraction. We know with certainty that: Select one: O O O O O a. output will increase. b. output will decrease. c. the interest rate will increase. d. the interest rate will decrease. e. both output and the interest rate will increase.
curve to In the market for reserves, if the Federal Reserve Bank increases the required reserve ratio, this should shift the the O supply; left O supply: right O demand; left O demand; right
Using the simple monetary rule Rt-r=m(T-), if m=0.5 and the inflation rate is 2 percent below the target inflation rate, the Federal Reserve will A. raise the marginal product of capital by 1 percent. B. lower the interest rate by 1 percent. O C. raise the interest rate by 1 percent. OD. lower the marginal product of capital by 1 percent. O E. lower the target rate by 2 percent.
1st attempt Assume that people in the economy have adaptive expectations. If the inflation rate has been stable at 2% in each prior year (because of passive monetary policies) and the central bank wants to lower unemployment, which policy should it implement? Choose one: O A. a policy that makes the inflation rate less than 2% O B. a policy that makes the inflation rate equal to 2% O C. a policy that makes the inflation rate greater than 2%
What are the immediate effects and the long-run effects if the Fed changes the quantity of money? If the Fed changes the quantity of money, the immediate effects are on and the long-run effects are on O A. the short-term nominal interest rate; the price level and the inflation rate B. the price level; the real interest rate and the inflation rate C. the inflation rate; the long-run nominal interest rate and the real interest rate D. the price level; the inflation rate
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. O The size of the labor force O The level of technological knowledge The price level The inflation rate Suppose the economy produces real GDP of $40 billion when unemployment is at its natural rate. Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph. 132 128 LRAS 124 120 116 Q112 + PRICE LEVEL
plz answer correct explain asap Dont answer by pen pepar
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According to the Taylor rule, the federal funds target rate O a. increases; increases O b. increases; decreases Oc. decreases; increases O d. decreases; decreases as inflation increases and when GDP increases, all else equal
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