macro questions

Suppose government spending, G, and taxes, T, both decrease by the same amount and that the central bank introduces an expansionary monetary policy. Which of the following will not occur in the short run? Select one: Q a. the interest rate increases b, output declines c. the IS curve shifts leftward d. the LM curve shifts downward 0000 e. none of the above Which of the following will cause a shift of the IS curve? Select one: O a. an increase in taxes O b. an increase in government spending O c. an increase in consumer confidence O d. all of the above O e. none of the above CheckLabel the following statement as true or false: A permanent, large increase in the price of oil reduces the natural rate of unemployment Select one: 0 True 0 False e Suppose that the firms' markup over cost is initially 44 % and that the wage determination equation when P =P is W = P(1-u) where u = unemployment rate (assume for simplicity, that the catch-all variable 2 does not enter wage setting). Now suppose that there is a permanent change in the oil price that changes the markup to 45%. Keeping all else constant, what is the absolute change in the natural level of unemployment (i.e. U2" U? =? (please answer in the form 0.xxx (which 3 digital places), e.g. if U3 = 0.321 and U; = 0.123 then answer is +0.198 - Also remember that (for example) m=10% can be expressed as decimal m=0.1 and you should use decimals in your calculations to get to the right answer => Please add a + or - to denote if it is a positive or negative change) Please match the right answers to each question A monetary policy expansion (increase in nominal money supply) will A monetary policy tightening (reduction in nominal money supply) will J Choose... increase output and reduce unemployment but only in the short run Increase output in the short run and have a permanent impact on output in medium run increase output and increase unemployment but only in the short run increase output and reduce unemployment but only in the medium run Reduce output in the short run but have no impact on output in medium run Reduce output in the medium run but have no impact on output in short run Please match the correct answer to each question When the output gap is positive... 4 Choose... inflation is higher than expected inflation inflation is falling inflation is neither rising nor falling inflation is lower than expected inflation the unemployment rate is higher than the natural unemployment rate At the natural rate of unemployment