Question 12 ptsThe best explanation of why the aggregate demand curve has a negative slope is that<br>
The best explanation of why the aggregate demand curve has a negative slope is that
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Question 32 ptsIn the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be<br>
In the new classical view, if the Chairman of the Fed announces a 10% increase in the money supply and then takes actions that cause the money supply to grow by more than 10%, the result will be
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Question 42 ptsAccording to the new classical view, when the actual price level is greater than the expected price level<br>
According to the new classical view, when the actual price level is greater than the expected price level
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Question 62 ptsIn the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,<br>
In the new Keynesian view, the larger the proportion of firms in the economy with sticky prices,
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Question 72 ptsIn the new Keynesian expression for the price level, <i>c</i> represents<br>
In the new Keynesian expression for the price level, c represents
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Question 82 ptsThe book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is<br>
The book in which Milton Friedman and Anna Schwartz reported on their study of the relation between money and the business cycle is
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Question 92 ptsIn the new Keynesian approach, an increase in the nominal money supply<br>
In the new Keynesian approach, an increase in the nominal money supply
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Question 102 ptsIn the new Keynesian approach, an increase in the nominal money supply affects output by<br>
In the new Keynesian approach, an increase in the nominal money supply affects output by
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Question 112 ptsDuring the years from 1964 to 1969, inflation increased in the United States<br>
During the years from 1964 to 1969, inflation increased in the United States
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Question 122 ptsThe expression for velocity derived from Keynes’s liquidity preference theory is<br>
The expression for velocity derived from Keynes’s liquidity preference theory is
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Question 132 ptsWhich of the following expressions is correct?<br>
Which of the following expressions is correct?
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Question 142 ptsHolding everything else constant, the increased use of credit cards in recent years probably<br>
Holding everything else constant, the increased use of credit cards in recent years probably
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Question 152 ptsThe simultaneous equilibrium of the money, nonmoney asset, and goods markets is known as<br>
The simultaneous equilibrium of the money, nonmoney asset, and goods markets is known as
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Question 162 ptsHistorical evidence suggests that the predictions of the real business cycle view are<br>
Historical evidence suggests that the predictions of the real business cycle view are
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Question 172 ptsMilton Friedman and Anna Schwartz believe that their evidence indicates that money growth causes output fluctuations because they discovered that<br>
Milton Friedman and Anna Schwartz believe that their evidence indicates that money growth causes output fluctuations because they discovered that
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Question 182 ptsAccording to New Keynesians, why does an expected change in the money supply affect output in the short run?<br>
According to New Keynesians, why does an expected change in the money supply affect output in the short run?
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Question 192 ptsBen Bernanke and Alan Blinder found evidence that money is<br>
Ben Bernanke and Alan Blinder found evidence that money is
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Question 202 ptsAccording to Friedman, the opportunity cost of holding money is determined by all of the following EXCEPT<br>
According to Friedman, the opportunity cost of holding money is determined by all of the following EXCEPT
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Question 212 ptsIn the new classical view, whether changes in the nominal money supply affect output in the short run depends on whether<br>
In the new classical view, whether changes in the nominal money supply affect output in the short run depends on whether
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Question 222 ptsThe long-run Phillips curve illustrates<br>
The long-run Phillips curve illustrates
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Question 232 ptsWhom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about his anti-inflation resolve?<br>
Whom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about his anti-inflation resolve?
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Question 242 ptsWhen output exceeds its full-employment level,<br>
When output exceeds its full-employment level,
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Question 252 ptsEconomists believe that the most serious costs of inflation arise from<br>
Economists believe that the most serious costs of inflation arise from
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Question 262 ptsWhat does the coefficient <i>a</i> in the new classical expression for short-run aggregate supply represent?<br>
What does the coefficient a in the new classical expression for short-run aggregate supply represent?
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Question 272 ptsWhich of the following statements is correct?<br>
Which of the following statements is correct?
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Question 282 ptsA decrease in the price level will lead to<br>
A decrease in the price level will lead to
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Question 292 ptsWhich of the following is a key assumption of Irving Fisher’s quantity theory of money demand?<br>
Which of the following is a key assumption of Irving Fisher’s quantity theory of money demand?
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Question 302 ptsWhich of the following is NOT included in aggregate demand?<br>
Which of the following is NOT included in aggregate demand?
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Question 312 ptsIn order to buy in 2006 a bundle of goods that cost $100 in 1965, you would need roughly<br>
In order to buy in 2006 a bundle of goods that cost $100 in 1965, you would need roughly
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Question 322 ptsAccording to the real business cycle model, the economy’s short-run aggregate supply curve is<br>
According to the real business cycle model, the economy’s short-run aggregate supply curve is
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Question 332 ptsInflation that is lower than expected redistributes wealth from<br>
Inflation that is lower than expected redistributes wealth from
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Question 342 ptsIf the nominal interest rate on saving is 12% and the expected inflation rate is 6%, what is the percentage reduction in real interest income resulting from a tax of 25%?<br>
If the nominal interest rate on saving is 12% and the expected inflation rate is 6%, what is the percentage reduction in real interest income resulting from a tax of 25%?
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Question 352 ptsMost economists believe that the aggregate supply curve is<br>
Most economists believe that the aggregate supply curve is
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Question 362 ptsAccording to Keynes, the demand for real balances is best expressed by which of the following equations?<br>
According to Keynes, the demand for real balances is best expressed by which of the following equations?
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Question 372 ptsEconomists who back the use of rules by the Fed believe that they would result in<br>
Economists who back the use of rules by the Fed believe that they would result in
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Question 382 ptsKeynes referred to the effect of portfolio allocation decisions on the demand for money as the<br>
Keynes referred to the effect of portfolio allocation decisions on the demand for money as the
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Question 392 ptsThe typical firm will find that its payoff to reducing price increases after the announcement of a disinflation policy<br>
The typical firm will find that its payoff to reducing price increases after the announcement of a disinflation policy
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Question 402 ptsWhich of the following statements is correct?<br>
Which of the following statements is correct?
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Question 412 ptsWhich of the following statements is true concerning the velocity of <i>M1</i>?<br>
Which of the following statements is true concerning the velocity of M1?
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Question 422 ptsWhich of the following statements is correct?<br>
Which of the following statements is correct?
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Question 432 ptsWhich of the following statements is correct?<br>
Which of the following statements is correct?
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Question 442 ptsIf the coefficient <i>a</i> in the new classical expression for short-run aggregate supply were equal to zero,<br>
If the coefficient a in the new classical expression for short-run aggregate supply were equal to zero,
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Question 452 ptsAn increase in the money supply will result in a lower exchange rate because<br>
An increase in the money supply will result in a lower exchange rate because
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Question 472 ptsIn the new Keynesian view a decline in consumer confidence that leads to a shift left in the <i>AD</i> curve<br>
In the new Keynesian view a decline in consumer confidence that leads to a shift left in the AD curve
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Question 482 ptsMilton Friedman first proposed his explanation of money demand in<br>
Milton Friedman first proposed his explanation of money demand in
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Question 492 ptsSustained growth in the money supply doesn’t affect real output in the long run but does lead to inflation according to<br>
Sustained growth in the money supply doesn’t affect real output in the long run but does lead to inflation according to
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Question 502 ptsIn the new Keynesian view, a disinflation policy<br>
In the new Keynesian view, a disinflation policy


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