Questions to Remember - P3
Terms in this set (14)
100. Paul David's "computer and the dynamo" theory is intended to explain
C.) Why key inventions like electricity and computers take a while to affect aggregate productivity growth
Assumption or implications of the Barro-Gordon model (3)
Fed dislikes both inflation and unemployment, achieves better long-run outcomes with constraints, equilibrium inflation rate depends in on the Phillips Curve tradeoff
When is there a political business cycle to UE, assuming Republicans low inflation (high UE), democrats high inflation (low UE)
if election decided by coin flip
The specific goal of the Fed's Forward Guidance policy was to reduce (X) and the specific goal goal of the Quantitative Easing policy was to reduce the (Y)
Expected average short-term interest rate; term/risk premium.
a central goal of the three main schools of thought regarding international development is to explain why some countries today have (2)
problems accumulating capital/low levels and growth rates of what the standard Solow Model summarizes as E
Under these conditions, which expression will equal the total absolute number of workers flowing from U to E in a given period?
fU or ZVβU1−β.
During the Great Recession of 2007-09, what (2) declined?
job finding rate, matching efficiency
The main reason that Quantitative Easing was introduced by the Fed was
To raise the amount of securities owned by the Fed and thereby raise long-term bond prices.
Quantitative Easing caused which of the following to rise the most in percentage terms?
Purchasing power parity; effect on NX
Net exports NX in each of the two countries are very sensitive to changes in the real exchange rate ǫ.
Harvard economist Larry Summers (pictured) believes that the U.S. economy is suffering from "secular stagnation." As a theoretical matter, which of the following events would NOT contribute to secular stagnation in the United States?
An increase in the budget deficit (defined as G − T ).
21. Since the Fall of 2015, the U.S. unemployment rate (UR) has
stayed about the same.
If the Classical Dichotomy holds, then a change in the money supply M will change
neither y nor m/p
job finding rate is