1. Some economists and economic policy makers are concerned about overly accommodative monetary policy in the United States during and following the COVID economic crisis. Who/what is being accommodated? {Choose thebestanswer.}

a. Households

b. Rest of the World

c. Government

d. Firms

2. In the AS-AD framework, AD represents ______________________________.

a. the short-run productive capacity of the economy

b. none of the above

c. the current productive capacity of the economy based on the production function and the supply of the factors of production

d. C + I + G + X - Mat different price levels

e. inflation in the long run

3. Some economists and economic policy makers are concerned about overly accommodative monetary policy in the United States during and following the COVID economic crisis. Why?

a. They are worried about resulting inflationary pressure.

b. They are worried about upward pressure on the US dollar exchange rate.

c. They are worried about resulting deflationary pressure.

4. With an interest rate of, say, 10 basis points (0.10%) on money market accounts, approximately what would inflation/deflation have to be to, ex post, have a real return of +1.00%?

a. 9%

b. -0.10%

c. -0.9%

d. 0.10%

e. 0.9%

f. 10%

5. All else equal, the lockdowns - both state-mandated and voluntary - during the pandemic would work towards __________ the fiscal multiplier.

a. increasing

b. decreasing

c. too little information to answer