Question 16 2pts

(2 points)In the AS-AD framework, SRAS represents ______________________________.

Group of answer choices

the steady-state productive capacity of the economy based on the current production function and the supply of the factors of production

C + I + G + X - M

the short-run output of the economy at different price levels

inflation in the long run

none of the above

the tension between good and evil

Question 17 2pts

(2 points)Some economists and economic policy makers were concerned about overly "accommodative" monetary policy in the United States during and following the COVID economic crisis. Which best described the "accommodation" that was worrying people? {Choose thebestanswer.}

Group of answer choices

Households accommodated to consume more

Firms accommodated to invest more

Government accommodated to increase the debt level

Rest of the World accommodated to buy our exports

Question 18 2pts

(2 points)Please consider this commentary in the Oct. 7. 2023 edition of the Wall Street Journal's Real Time Economics newletter. The topic is the September 2023 jobs report.

"For the Federal Reserve, the inflationary implications of strong payroll growth were offset by a relatively benign reading on wages. Total hourly earnings rose just 0.2% and were up 4.2% from a year earlier. In the last three months they were up 3.4% annualized, which if sustained, would becompatible with 2% inflation."

These wage gains were "benign" for the _________________ because the relatively low wage gains _______________ ___________________ pressure.

Group of answer choices

economy, increased inflationary

workers, decreased inflationary pressure

economy, decreased inflationary

workers, increased inflationary

Flag question: Question 19Question 192pts

(2 points)Please read the excerpt below from the Wall Street Journal on May 4, 2021.

The "Eurpean fiscal union" refers to __________.

Group of answer choices

the centralization of taxing and spending authority across the eurozone

the centralization of monetary authority across the eurozone

the centralization of central banks across the eurozone.

Question 20 2pts

(2 points)According to ___________________, if the money supply grows at 3%, real GDP grows at 2%, and the velocity of money is constant, then the inflation rate will be approximately _______________.

Group of answer choices

the quantity theory of money; 5%

the Phillips curve; 5%

the quantity theory of money; 1%

the Phillips curve; 1%

the quantity theory of money; 4%

Question 21 2pts

(2 points)In the AS-AD framework, LRAS represents______________________________.

Group of answer choices

the steady-state productive capacity of the economy based on the current production function and the supply of the factors of production

C + I + G + X - M at different price levels

the short-run output of the economy at different price levels

the maximum output the economy can produce at any price level

None of these are correct.

Question 22 2pts

(2 points) Please consider this graph from the Wall Street Journal on April 22, 2021.

The depicted effective fed funds is a __________ interest rate. The period from 2001 through 2004 saw fairly __________, __________ policy.

Group of answer choices

Nominal; expansionary; monetary

Nominal; contractionary; monetary

Nominal; expansionary; fiscal

Nominal; contractionary; fiscal

Real; contractionary; monetary

Real; expansionary; monetary

Real; contractionary; fiscal

Real; expansionary; fiscal

Question 23 2pts

"Ten years ago was also the unlikely start to one of the great success stories in developing-markets history. That's when a Marxist guerrilla group was at the gates of Bogot, firing shells into the Colombian capital. But the new government and rule of law ultimately prevailed, and foreign direct investment slowly returnedthen exploded as a normalcy took hold. Colombia's stock market has since surged twelvefold. Its Medelln-listed companies are the envy of Latin American investment bankers, and it enjoys affordable debt terms thanks to its investment-grade credit rating. Within a short decade, Colombia has gone from near-failed state to frontier curiosity to thrivingofficialemerging market." ~ Business Week, September 20, 2012

(2 points)Based on this excerpt, __________________ was the key underlying factor that turned things around for this economy.

Group of answer choices

foreign direct investment

establishing the rule of law

attaining investment-grade sovereign credit rating

the strong stock market

Question 24 2pts

(2 points)If China could return to high single-digit real growth rates for the long-term, approximately how long would it take for the standard of living in China to double?

Group of answer choices

Not enough information to answer the question.

~ 70 years

~ 35

< 10 years

Question 25 2pts

(2 points)Prior to current COVID-19 crisis, U.S. job growth was strong and continuous yet inflation was low. This is the opposite of what ______________ would predict.

Group of answer choices

the AS-AD-LRAS framework

the production function

the quantity theory of money

the Phillips curve

Okun's Law

the Taylor Rule

Honestly, I have no clue.

Question 26 2pts

(2 points)In a recent NPR story the reporter said, "The moment you get paid, you are in a race against time. It starts the second [the money touches] your hand." A local woman said, "It burns your hand." What must be happening in the country of interest?

Group of answer choices

rapid deflation

hyperinflation

global warming

good old fashioned disinflation

none of these are anywhere close to correct

appreciation of the currency

decreasing demand for shoe leather

Question 27 2pts

(2 points)Poorly timed discretionary macroeconomic policy can do more harm than good. Getting the timing right with monetary policy is generally ________________________________.

Group of answer choices

more difficult than with fiscal policy

far more difficult than with fiscal policy

less difficult than with fiscal policy

about the same difficulty as with fiscal policy

Question 28 2pts

(2 points)Which of the following would decrease the size of the fiscal multiplier?

Group of answer choices

a decrease in the tax rate

a marginal decrease in the quantity of imports purchased by households

a marginal increase in the amount of consumption spending by households

a marginal increase in the amount saved by households

Question 29 2pts

(2 points)The "independence of the central bank" refers to _____________________________.

Group of answer choices

independence from the monetary authority

independence from political influence and the fiscal authority

independence from other central banks around the world

None of the provided answers are correct.

All of the provided answers are correct.

Question 30 2pts

(2 points)As the global economy came out of the COVID crisis, we saw many examples of problems in the global supply chain. In the AS-AD framework this would .... (Please choose thebestanswer.)

Group of answer choices

keep LRAS from shifting to the right as output is necessarily lower than it would be otherwise.

have no effect on LRAS, if temporary and no harm done to the production function, but would shift the SRAS in/back.

cause LRAS to shift to the left because the production function cannot operate at full efficiency.

cause SRAS to shift out as firms adjusted their menu of products and prices.

cause SRAS to shift in/back as firms adjusted their menu of products and prices.

have no effect on LRAS as long as temporary and does not harm the production function.