10) Assume that the economy is initially operating at the natural level of output. Suppose there is an increase in the price of oil. If there is no shift in the aggregate demand curve then this will cause which of the following in the medium run? A) a reduction in the interest rate. B) a reduction in output and an increase in the price level. C) a reduction in output and a reduction in the interest rate. D) a reduction in unemployment, an increase nominal wages and an increase in the price level. E) a reduction in the price level and no change in output. 11) The ?sacri?ce ratio? is the needed to achieve a decrease in in?ation of one percentage point. A) number of years B) percentage-point decrease in money growth C) permanent increase in the unemployment rate D) number of point years of excess unemployment E) debt to GDP ratio 12) According to the IS-LM model of Ch. 14, a decrease in expected in?ation leads in the short run to A) a decrease in output (Y) and an increase in the nominal interest rate (i). B) a decrease in Y and a decrease in i. C) an increase in Y and an increase in i. D) an increase in Y and a decrease in i. E) an uncertain impact on Y and no change in i. 13) In the medium run higher money growth gIn causes A) lower nominal interest rates and lower real interest rates B) lower nominal interest rates and no change in real interest rates C) no change in nominal interest rates and no change in real interest rates D) higher nominal interest rates and no change in real interest rates E) higher nominal interest rates and higher real interest rates 14) Starting from medium run equilibrium, suppose there is a decrease in money growth gm. The impact on the nominal interest rate i is: A) i falls in the short run but is unchanged in the medium run. B) i falls in the short run but increases in the medium run. C) i increases in both the short run and the medium run. D) i increases in the short run but is unchanged in the medium run. E) i increases in the short run and falls in the medium run. 15) A liquidity trap makes it dif?cult for policymakers to increase economic activity because: A) an open market operation will have no effect on money supply. B) increased money supply will increase nominal interest rates. C) ?scal policy will have no effect on the demand for goods. D) expansionary ?scal policy will increase real interest rates. E) none of the above.
This text was automatically generated from the attachment. Please refer to the attachment to view this question.
This question was created from Practice Final https://www.aceyourstudies.com/file/7069862/Practice-Final/?focusQaId=10093500
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.