Which of the following is FALSE?
A: in the long run, a central bank can effectively limit inflation
B: in the long run, a central bank can do fairly little to stimulate real GDP
C: in the long run, monetary policy has no effect on nominal GDP
D: unless inflation is very high, stimulating the economy does more to enhance economic welfare than controlling inflation
E: a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run
A: in the long run, a central bank can effectively limit inflation
B: in the long run, a central bank can do fairly little to stimulate real GDP
C: in the long run, monetary policy has no effect on nominal GDP
D: unless inflation is very high, stimulating the economy does more to enhance economic welfare than controlling inflation
E: a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run
举一反三
- When the economy is operating at potential GDP, an unannounced decrease in the rate of growth of the money supply intended to reduce inflation will most likely lead to. lower inflation and: A: a decrease in output in both the short run and the long run. B: no change in output in both the short run and the long run. C: a decrease in output in the short run, and lower inflation but no change in output in the long run.
- Which of the following is NOT a result of monetary policy? A: aggregate demand is affected, leading to a change in nominal GDP B: the level of potential GDP will change C: spending on investment and durable consumption goods is affected D: the rates of unemployment and inflation are affected in the short run E: real interest rates will remain unaffected in the long run
- Which of the following is accurate? A: Monetary policy is neutral in both the short run and the long run. B: Though monetary policy is neutral in the long run, it may have effects on real variables in the short run. C: Monetary policy has profound effects on real variables in both the short run and the long run. D: Monetary policy has profound effects on real variables in the long run, but is neutral in the short run.
- In the short run, a central bank can most easily stimulate economic activity by A: selling government bonds to the public B: raising interest rates to make investments more profitable C: lowering the inflation rate though monetary restriction D: influencing aggregate supply through monetary expansion E: influencing aggregate demand and accepting a higher price level in the future
- As the economy enters a boom we can generally expect that A: inflation will decrease with little change in the unemployment rate B: unemployment will increase and inflation will decrease C: nominal GDP will increase but only because of an increase in the price level D: inflation will increase and the unemployment rate will decrease E: output will increase with little change in unemployment or inflation