国际经济学题库 25页

------------------------------------------作者xxxx------------------------------------------日期xxxx国际经济学题库【精品文档】InternationalEconomics,8e(Krugman)【精品文档】【精品文档】Chapter16 【精品文档】【精品文档】OutputandtheExchangeRateintheShortRun【精品文档】【精品文档】16.1 【精品文档】【精品文档】DeterminantsofAggregateDemandinanOpenEconomy【精品文档】【精品文档】1) 【精品文档】【精品文档】Howdoesanincreaseintherealexchangerateaffectexportsandimports?【精品文档】【精品文档】A) 【精品文档】【精品文档】Exportsincrease;importsdecrease.【精品文档】【精品文档】B) 【精品文档】【精品文档】Exportsdecrease;importsincrease.【精品文档】【精品文档】C) 【精品文档】【精品文档】Exportsincrease;importschangeambiguously.【精品文档】【精品文档】D) 【精品文档】【精品文档】Exportschangeambiguously;importsdecrease.【精品文档】【精品文档】E) 【精品文档】【精品文档】Exportsincrease;importsareconstant.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Whichoneofthefollowingstatementsisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Forassetmarketstoremaininequilibrium,ariseindomesticoutputmustbeaccompaniedbyadepreciationofdomesticcurrency,allelseequal.【精品文档】【精品文档】B) 【精品文档】【精品文档】Forassetmarketstoremaininequilibrium,afallindomesticoutputmustbeaccompaniedbyadepreciationofforeigncurrency,allelseequal.【精品文档】【精品文档】C) 【精品文档】【精品文档】Forassetmarketstoremaininequilibrium,ariseindomesticoutputmustbeaccompaniedbyanappreciationofdomesticcurrency,allelseequal.【精品文档】【精品文档】D) 【精品文档】【精品文档】Forassetmarketstoremaininequilibrium,afallindomesticoutputmustbeaccompaniedbyanappreciationofdomesticcurrency,allelseequal.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】3) 【精品文档】【精品文档】Whichoneofthefollowingstatementsismostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Ingeneral,consumptiondemandrisesbylessthandisposableincome.【精品文档】【精品文档】B) 【精品文档】【精品文档】Ingeneral,consumptiondemandrisesbymorethandisposableincome.【精品文档】【精品文档】C) 【精品文档】【精品文档】Ingeneral,consumptiondemandrisesbymorethanincome.【精品文档】\n【精品文档】D) 【精品文档】【精品文档】Ingeneral,consumptiondemandrisesbythesameamountasdisposableincomerises.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】4) 【精品文档】【精品文档】Thecurrentaccountbalanceis【精品文档】【精品文档】A) 【精品文档】【精品文档】thesupplyofacountry'sexportslessthecountry'sowndemandforimports.【精品文档】【精品文档】B) 【精品文档】【精品文档】thedemandforacountry'sexportsplusthecountry'sowndemandforimports.【精品文档】【精品文档】C) 【精品文档】【精品文档】thecountry'sowndemandforimportslessthedemandforacountry'sexports.【精品文档】【精品文档】D) 【精品文档】【精品文档】thedemandforacountry'sexportslessthecountry'sowndemandforimports.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】5) 【精品文档】【精品文档】Thedomesticcurrencypriceofarepresentativeforeignexpenditurebasketis【精品文档】【精品文档】A) 【精品文档】【精品文档】P,thedomesticpricelevel.【精品文档】【精品文档】B) 【精品文档】【精品文档】E,thenominalexchangerate.【精品文档】【精品文档】C) 【精品文档】【精品文档】PtimesE,thedomesticpriceleveltimesthedomesticpricelevel.【精品文档】【精品文档】D) 【精品文档】【精品文档】P,theforeignpricelevel.【精品文档】【精品文档】E) 【精品文档】【精品文档】PtimesE,theforeignpriceleveltimesthenominalexchangerate.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】6) 【精品文档】【精品文档】Currentaccountisgivenbytheequation:【精品文档】【精品文档】A) 【精品文档】【精品文档】CA=IM-EX(measuredintermsofdomesticoutput).【精品文档】【精品文档】B) 【精品文档】【精品文档】CA=IM-EX(measuredintermsofforeignoutput).【精品文档】【精品文档】C) 【精品文档】【精品文档】CA=EX-IM(measuredintermsofdomesticoutput).【精品文档】【精品文档】D) 【精品文档】【精品文档】CA=EX-IM(measuredintermsofforeignoutput).【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】7) 【精品文档】【精品文档】Thedomesticcurrencypriceofarepresentativedomesticexpenditurebasketis【精品文档】【精品文档】A) 【精品文档】【精品文档】P,thedomesticpricelevel.【精品文档】【精品文档】B) 【精品文档】【精品文档】E,thenominalexchangerate.【精品文档】【精品文档】C) 【精品文档】【精品文档】PtimesE,thedomesticpriceleveltimesthedomesticpricelevel.【精品文档】【精品文档】D) 【精品文档】【精品文档】P,theforeignpricelevel.【精品文档】【精品文档】E) 【精品文档】【精品文档】PtimesE,theforeignpriceleveltimesthenominalexchangerate.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】8) 【精品文档】【精品文档】Therealexchangerate,q,isdefinedas【精品文档】【精品文档】A) 【精品文档】【精品文档】thepriceoftheforeignbasketintermsofthedomesticone.【精品文档】【精品文档】B) 【精品文档】【精品文档】thepriceofthedomesticbasketintermsoftheforeignone.【精品文档】【精品文档】C) 【精品文档】【精品文档】thepriceoftheforeignbasket.【精品文档】【精品文档】D) 【精品文档】【精品文档】thepriceofthedomesticbasket.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】9) 【精品文档】【精品文档】Acountry'sdomesticcurrency'srealexchangerate,q,isdefinedas【精品文档】【精品文档】A) 【精品文档】【精品文档】E.【精品文档】【精品文档】B) 【精品文档】【精品文档】EtimesP.【精品文档】\n【精品文档】C) 【精品文档】【精品文档】EtimesP.【精品文档】【精品文档】D) 【精品文档】【精品文档】(EtimesP)/P.【精品文档】【精品文档】E) 【精品文档】【精品文档】P/(EtimesP).【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】10) 【精品文档】【精品文档】IftherepresentativebasketofEuropeangoodsandservicescosts40euros,therepresentativeU.S.basketcosts$50,andthedollar/euroexchangerateis$0.90pereuro,thenthepriceoftheEuropeanbasketintermsofU.S.basketis【精品文档】【精品文档】A) 【精品文档】【精品文档】[(0.9$/euro)(40europeraEuropeanbasket)]/[(50$/U.S.basket)].【精品文档】【精品文档】B) 【精品文档】【精品文档】[(0.9$/euro)(50$/U.S.basket)]/[(40europeraEuropeanbasket)].【精品文档】【精品文档】C) 【精品文档】【精品文档】[(40europeraEuropeanbasket)]/[(50$/U.S.basket)(0.9$/euro)].【精品文档】【精品文档】D) 【精品文档】【精品文档】[(50$/U.S.basket)].【精品文档】【精品文档】E) 【精品文档】【精品文档】[(0.9$/euro)(40europeraEuropeanbasket)(50$U.S.basket)].【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】11) 【精品文档】【精品文档】WhenEP/Prises,【精品文档】【精品文档】A) 【精品文档】【精品文档】IMwillrise.【精品文档】【精品文档】B) 【精品文档】【精品文档】IMwillfall.【精品文档】【精品文档】C) 【精品文档】【精品文档】IMmayriseorfall.【精品文档】【精品文档】D) 【精品文档】【精品文档】IMisnotaffected.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】12) 【精品文档】【精品文档】Whentherealexchangeraterises,【精品文档】【精品文档】A) 【精品文档】【精品文档】Importsmeasuredintermsofdomesticoutputwillrise.【精品文档】【精品文档】B) 【精品文档】【精品文档】Importsmeasuredintermsofdomesticoutputwillfall.【精品文档】【精品文档】C) 【精品文档】【精品文档】Importsmeasuredintermsofdomesticoutputwillneverbeaffected.【精品文档】【精品文档】D) 【精品文档】【精品文档】Importsmeasuredintermsofdomesticoutputmayriseorfall.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】13) 【精品文档】【精品文档】Whichoneofthefollowingstatementsisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Anincreaseindisposableincomeimprovesthecurrentaccount.【精品文档】【精品文档】B) 【精品文档】【精品文档】Anincreaseindisposableincomedoesnotaffectthecurrentaccount.【精品文档】【精品文档】C) 【精品文档】【精品文档】Anincreaseindisposableincomeworsensthecurrentaccount.【精品文档】【精品文档】D) 【精品文档】【精品文档】Anincreaseinincomeworsensthecurrentaccount.【精品文档】【精品文档】E) 【精品文档】【精品文档】Anincreaseinincomeimprovesthecurrentaccount.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】14) 【精品文档】【精品文档】Whichoneofthefollowingstatementsisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Anincreaseintherealexchangerateandanincreaseindisposableincomeimprovethecurrentaccount.【精品文档】【精品文档】B) 【精品文档】【精品文档】Adecreaseintherealexchangerateandadecreaseindisposableincomeimprovethecurrentaccount.【精品文档】【精品文档】C) 【精品文档】【精品文档】Adecreaseintherealexchangerateandaincreaseindisposableincomeimprovethecurrentaccount.【精品文档】【精品文档】D) 【精品文档】【精品文档】Anincreaseintherealexchangerateandadecreaseindisposableincomeimprovethecurrentaccount.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】15) 【精品文档】【精品文档】Disposableincomeisdefinedas:【精品文档】【精品文档】A) 【精品文档】【精品文档】Y-C.【精品文档】【精品文档】B) 【精品文档】【精品文档】Y-T.【精品文档】【精品文档】C) 【精品文档】【精品文档】C-T.【精品文档】【精品文档】D) 【精品文档】【精品文档】I-C.【精品文档】【精品文档】E) 【精品文档】【精品文档】Y-I.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】16) 【精品文档】【精品文档】Therealexchangerateis:【精品文档】【精品文档】A) 【精品文档】【精品文档】howmuchofaforeigncurrencyyoucanbuywiththedomesticcurrency.【精品文档】【精品文档】B) 【精品文档】【精品文档】foreignCPIdividedbythedomesticCPI.【精品文档】【精品文档】C) 【精品文档】【精品文档】thepriceofforeigngoodsintermsofdomesticgoods.【精品文档】【精品文档】D) 【精品文档】【精品文档】thepriceofforeigngoodsindollars.【精品文档】【精品文档】E) 【精品文档】【精品文档】thedomesticcurrencydividedbythepricelevel.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】17) 【精品文档】【精品文档】Anincreaseintherealexchangerate:【精品文档】【精品文档】A) 【精品文档】【精品文档】makesimportsmoreexpensive.【精品文档】【精品文档】B) 【精品文档】【精品文档】makesimportslessexpensive.【精品文档】【精品文档】C) 【精品文档】【精品文档】doesnotaffectimportvalues.【精品文档】【精品文档】D) 【精品文档】【精品文档】alwaysmakesthenumberofimportsrise.【精品文档】【精品文档】E) 【精品文档】【精品文档】AandD.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】18) 【精品文档】【精品文档】Whichofthefollowingcompetetodeterminewhetherthecurrentaccountimprovesorworsensfollowingariseintherealexchangerate:【精品文档】【精品文档】A) 【精品文档】【精品文档】appreciationanddepreciation.【精品文档】【精品文档】B) 【精品文档】【精品文档】crowdingOuteffectandproducerseffect.【精品文档】【精品文档】C) 【精品文档】【精品文档】volumeeffectandvalueeffect.【精品文档】【精品文档】D) 【精品文档】【精品文档】volumeeffectandinflation.【精品文档】【精品文档】E) 【精品文档】【精品文档】producerseffectandvalueeffect.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】19) 【精品文档】【精品文档】Thecurrentaccountincreaseswhen:【精品文档】【精品文档】A) 【精品文档】【精品文档】realexchangeratedecreases.【精品文档】【精品文档】B) 【精品文档】【精品文档】realexchangerateincreases.【精品文档】【精品文档】C) 【精品文档】【精品文档】disposableincomeincreases.【精品文档】【精品文档】D) 【精品文档】【精品文档】exportsfall.【精品文档】【精品文档】E) 【精品文档】【精品文档】domesticpricesfall.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】20) 【精品文档】【精品文档】WhichofthefollowingwouldNOTcausetherealexchangeratetorise?【精品文档】【精品文档】A) 【精品文档】【精品文档】ariseintheexchangerate,E【精品文档】【精品文档】B) 【精品文档】【精品文档】depreciationofthehomecurrency【精品文档】【精品文档】C) 【精品文档】【精品文档】arightshiftoftheaggregatedemandcurve【精品文档】【精品文档】D) 【精品文档】【精品文档】ariseinforeignprices,P【精品文档】【精品文档】E) 【精品文档】【精品文档】afallindomesticprices,P【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】21) 【精品文档】【精品文档】Whatisthebestwaytodescribeaggregatedemand?【精品文档】【精品文档】A) 【精品文档】【精品文档】quantityrequiredtosatisfyequilibrium【精品文档】【精品文档】B) 【精品文档】【精品文档】exportsdecrease;importsincrease【精品文档】【精品文档】C) 【精品文档】【精品文档】amountofacountry'sgoodsandservicesdemandedbyhouseholdandfirmsthroughouttheworld【精品文档】【精品文档】D) 【精品文档】【精品文档】individual'sdemand【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】22) 【精品文档】【精品文档】Whathaveweassumedwhenweconcludethatarealdepreciationofthecurrencyimprovesthecurrentaccount?【精品文档】【精品文档】A) 【精品文档】【精品文档】Thevolumeeffectoutweighsthevalueeffect.【精品文档】【精品文档】B) 【精品文档】【精品文档】Thevalueeffectoutweighsthevolumeeffect.【精品文档】【精品文档】C) 【精品文档】【精品文档】Allelseequalandthevolumeeffectoutweighsthevalueeffect.【精品文档】【精品文档】D) 【精品文档】【精品文档】Allelseequalandthevalueeffectoutweighsthevolumeeffect.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】23) 【精品文档】【精品文档】Acountry'sdomesticcurrency'srealexchangerate,q,isbestdescribedby【精品文档】【精品文档】A) 【精品文档】【精品文档】thepriceofsimilargoodsinthesamemarket.【精品文档】【精品文档】B) 【精品文档】【精品文档】thepriceofthedomesticbasketintermsoftheforeignone.【精品文档】【精品文档】C) 【精品文档】【精品文档】thepriceofadomesticbasket.【精品文档】【精品文档】D) 【精品文档】【精品文档】thepriceoftheforeignbasketintermsofthedomesticbasket.【精品文档】【精品文档】E) 【精品文档】【精品文档】thepriceofdifferentgoodsbasketsinthesamemarket.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】24) 【精品文档】【精品文档】Explainhowdoesanincreaseintherealexchangerateaffectexportsandimports?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Whentherealexchangerateincreases,domesticproductsarecheaperrelativetoforeignproducts.Duetothis,exportsincreaseasforeignersdemandmoreofourexports.Thechangeinimportsisambiguousbecausefewerunitsofimportsarepurchased(thevolumeeffect),buteachforeignunitisnowmoreexpensive(thevalueeffect).Remember:exportsandimportsaremeasuredintermsofdomesticoutput,.dollarvalue,notvolumeofunits.However,weoftenassumethatthevolumeeffectoutweighsthevalueeffect,sothatimportsdecreasewhentherealexchangeraterises.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】25) 【精品文档】【精品文档】Pleasediscussthevolumeeffectandthevalueeffectinregardstohowthecurrentaccountwillmovegivenachangeintherealexchangerate.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Thevolumeeffecttakesplacewhenconsumerspendingshiftsonexportandimportquantities,whilethevalueeffectresultswhenthedomesticoutputworthofagivenamountofforeignimportsischanged.Itisassumedthatthevolumeeffectoutweighsthevalueeffect,sothat,otherthingsequal,arealdepreciationofthecurrencyimprovesthecurrentaccount.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】26) 【精品文档】【精品文档】Whatistherealexchangerate?Whatisitsrelationshiptothecurrentaccount?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Definedas:EP/P(theexchangeratemultipliedbyforeignprices,dividedbydomesticprices).Whilethenominalexchangeratemeasureshowmuchofaforeigncurrencyonecanbuywithaunitofdomesticcurrency,therealexchangeratemeasureshowmanygoodsandservicesonecouldbuy.Ariseintherealexchangerate(adepreciationofdomesticcurrency)meansthatdomesticgoodsarecheapercomparedtoforeigngoods,soexportsincreaseandimportsdecrease.AggregatedemandincreasesandtheCArises.Afallintherealexchangeratehastheoppositeeffect:AggregatedemanddecreasesandtheCAfalls.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】27) 【精品文档】【精品文档】Monetaryexpansioncausesthecurrentaccountbalancetoincreaseintheshortrun.Discuss.Isthesamethecaseforfiscalexpansion?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】AmincreaseinthemoneysupplyleadstoanincreaseinYandE(outputincreasesandthecurrencydepreciates,respectively).Becauseofthecurrencydepreciation,domesticgoodsarenowcheapercomparedtoforeigngoods.Exportsincreaseandimportsdecrease,thereforetheCABincreases.AnexpansionoffiscalpolicyactuallyreducestheCAB:theDDcurveisshiftedright.ThereforeYrises,butEfalls(outputrisesbutthecurrencyappreciates.)Domesticgoodsaremoreexpensive,andtheCABfalls.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】28) 【精品文档】【精品文档】Findtherealexchangerateforthefollowingcase:AssumethattherepresentativebasketofEuropeangoodsandservicescosts40eurosandtherepresentativeU.S.basketcosts$50,andthedollar/euroexchangerateis$0.90pereuro,thenthepriceoftheEuropeanbasketintermsofU.S.basketis________.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】[(0.9$/euro)(40europeraEuropeanbasket)]/[(50$/U.S.basket)]【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】29) 【精品文档】【精品文档】Findtherealexchangerateforthefollowingcase:AssumethattherepresentativebasketofEuropeangoodscosts150eurosandtherepresentativeU.S.basketcosts$90,andthedollar/euroexchangerateis$0.80pereuro,thenthepriceoftheEuropeanbasketintermsofU.S.basketis:【精品文档】【精品文档】Answer: 【精品文档】【精品文档】[(0.80$/euro)(150europeraEuropeanbasket)]/[(90$/U.S.basket)]=1.33U.S.baskets/Europeanbasket.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】30) 【精品文档】【精品文档】Findtherealexchangerateforthefollowingcase:AssumethattherepresentativebasketofEuropeangoodscosts150eurosandtherepresentativeU.S.basketcosts$200,andthedollar/euroexchangerateis$1.20pereuro,thenthepriceoftheEuropeanbasketintermsofU.S.basketis:【精品文档】【精品文档】Answer: 【精品文档】【精品文档】[(1.20$/euro)(150europeraEuropeanbasket)]/[(200$/U.S.basket)]=0.9U.S.baskets/Europeanbasket.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】31) 【精品文档】【精品文档】Findtherealexchangerateforthefollowingcase:AssumethattherepresentativebasketofEuropeangoodscosts100eurosandtherepresentativeU.S.basketcosts$125,andthedollar/euroexchangerateis$0.75pereuro,thenthepriceoftheEuropeanbasketintermsofU.S.basketis:【精品文档】【精品文档】Answer: 【精品文档】【精品文档】[(0.75$/euro)(100europeraEuropeanbasket)]/[(125$/U.S.basket)]=0.60U.S.baskets/Europeanbasket.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】32) 【精品文档】【精品文档】Fillinthefollowingtable:【精品文档】【精品文档】Answer: 【精品文档】【精品文档】【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】33) 【精品文档】【精品文档】Fillinthefollowingtable【精品文档】【精品文档】Answer: 【精品文档】【精品文档】【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】16.2 【精品文档】【精品文档】TheEquationofAggregateDemand【精品文档】【精品文档】1) 【精品文档】【精品文档】Howdoesariseinrealincomeaffectaggregatedemand?【精品文档】【精品文档】A) 【精品文档】【精品文档】Y↑impliesYd↑impliesIm↑impliesCA↓impliesAD↓,butY↑impliesYd↑impliesC↑impliesAD↑bymore【精品文档】【精品文档】B) 【精品文档】【精品文档】Y↑impliesYd↑impliesIm↓impliesCA↓impliesAD↓,butY↑impliesYd↑impliesC↑impliesAD↑bymore【精品文档】【精品文档】C) 【精品文档】【精品文档】Y↑impliesYd↑impliesIm↑impliesCA↑impliesAD↑,andY↑impliesYd↑impliesC↑impliesAD↑【精品文档】【精品文档】D) 【精品文档】【精品文档】Y↑impliesYd↑impliesIm↑impliesCA↓impliesAD↓,butY↑impliesYd↑impliesC↑impliesAD↑byless【精品文档】【精品文档】E) 【精品文档】【精品文档】Y↑impliesYd↑impliesIm↓impliesCA↓impliesAD↓,butY↑impliesYd↑impliesC↑impliesAD↑byless【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】2) 【精品文档】【精品文档】Whichoneofthefollowingstatementsisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Ariseindomesticrealincomeraisesaggregatedemandforhomeoutput.【精品文档】【精品文档】B) 【精品文档】【精品文档】Ariseindomesticrealincomedecreasesaggregatedemandforhomeoutputbecauseoftheincreasedemandforimport.【精品文档】【精品文档】C) 【精品文档】【精品文档】Ariseindomesticrealincomekeepsaggregatedemandforhomeoutputatthesamelevel.【精品文档】【精品文档】D) 【精品文档】【精品文档】Itisdifficulttotellwhetherariseindomesticrealincomeaffectspositivelyornegativelyaggregatedemandforhomeoutput.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】3) 【精品文档】【精品文档】Theaggregatedemandforhomeinputcanbewrittenasafunctionof:I.Realexchangerate.II.Governmentspending.III.Disposableincome.【精品文档】【精品文档】A) 【精品文档】【精品文档】Ionly【精品文档】【精品文档】B) 【精品文档】【精品文档】IIIonly【精品文档】【精品文档】C) 【精品文档】【精品文档】IandIII【精品文档】【精品文档】D) 【精品文档】【精品文档】IIandIII【精品文档】【精品文档】E) 【精品文档】【精品文档】I,II,andIII【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】4) 【精品文档】【精品文档】Whatisanaccurateimplicationresultingfromanincreaseinincome?【精品文档】【精品文档】A) 【精品文档】【精品文档】anincreaseinexchangerate【精品文档】【精品文档】B) 【精品文档】【精品文档】adecreaseinexchangerate【精品文档】【精品文档】C) 【精品文档】【精品文档】adecreaseinconsumption【精品文档】【精品文档】D) 【精品文档】【精品文档】adecreaseinoutput【精品文档】【精品文档】E) 【精品文档】【精品文档】anincreaseinconsumption【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】5) 【精品文档】【精品文档】Explainhowdoesariseinrealincomeaffectaggregatedemand?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Ariseindomesticrealincome,Y,leadstoariseindisposableincome,Yd.Thisraisesthespendingonimports,IM,thusloweringthecurrentaccount,CA,andreducingaggregatedemand,AD.However,theriseinYdalsocausesariseinconsumption,C,andraisesaggregatedemand,AD,bymorethanthecorrespondingdecrease.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】6) 【精品文档】【精品文档】Explainthedifferencebetweenthefollowingtwoexpressions:Y=C(Yd)+I+G+CA(EP/P,Yd)andY=C+I+G+CA【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Thefirstonerepresentsabehavioralequationandthusmayexpressequilibriumconditionfortheoutputmarketortheaggregatedesireddemandforoutput.Thesecondequationisonlyanidentitythatisalwaystrue.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】16.3 【精品文档】【精品文档】HowOutputisDeterminedintheShortRun【精品文档】【精品文档】1) 【精品文档】【精品文档】Whichoneofthefollowingstatementsismostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Factorsofproductioncanonlybeover-employedintheshortrun.【精品文档】【精品文档】B) 【精品文档】【精品文档】Factorsofproductioncanonlybeunder-employedintheshortrun.【精品文档】【精品文档】C) 【精品文档】【精品文档】Factorsofproductioncanbeover-orunder-employedinthelongrun.【精品文档】【精品文档】D) 【精品文档】【精品文档】Factorsofproductioncanbeover-orunder-employedintheshortrun.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Intheshort-run,anyriseintherealexchangerate,EP/P,willcause【精品文档】【精品文档】A) 【精品文档】【精品文档】anupwardshiftintheaggregatedemandfunctionandareductioninoutput【精品文档】【精品文档】B) 【精品文档】【精品文档】anupwardshiftintheaggregatedemandfunctionandanexpansionofoutput【精品文档】【精品文档】C) 【精品文档】【精品文档】adownwardshiftintheaggregatedemandfunctionandanexpansionofoutput【精品文档】【精品文档】D) 【精品文档】【精品文档】andownwardshiftintheaggregatedemandfunctionandareductioninoutput【精品文档】【精品文档】E) 【精品文档】【精品文档】anupwardshiftintheaggregatedemandfunctionbutleavesoutputintact【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】3) 【精品文档】【精品文档】Intheshort-run,anyfallinEP/P,regardlessofitscauses,willcause【精品文档】【精品文档】A) 【精品文档】【精品文档】anupwardshiftintheaggregatedemandfunctionandanexpansionofoutput【精品文档】【精品文档】B) 【精品文档】【精品文档】anupwardshiftintheaggregatedemandfunctionandareductioninoutput【精品文档】【精品文档】C) 【精品文档】【精品文档】adownwardshiftintheaggregatedemandfunctionandanexpansionofoutput【精品文档】【精品文档】D) 【精品文档】【精品文档】andownwardshiftintheaggregatedemandfunctionandareductioninoutput【精品文档】【精品文档】E) 【精品文档】【精品文档】anupwardshiftintheaggregatedemandfunctionbutleavesoutputintact【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】4) 【精品文档】【精品文档】Theuniqueoutputlevelintheshort-runisfoundattheintersectionofthefollowingcurves:【精品文档】【精品文档】A) 【精品文档】【精品文档】aggregatedemandandaggregatesupply【精品文档】【精品文档】B) 【精品文档】【精品文档】aggregatedemandand45degreeline【精品文档】【精品文档】C) 【精品文档】【精品文档】aggregatesupplyand45degreeline【精品文档】【精品文档】D) 【精品文档】【精品文档】aggregatedemandandshort-runaggregatesupply【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】5) 【精品文档】【精品文档】Whyistheeconomyatfullemploymentinthelongrun?【精品文档】【精品文档】A) 【精品文档】【精品文档】Onlywageshavetheabilitytoadjust.【精品文档】【精品文档】B) 【精品文档】【精品文档】Onlypricecanadjust.【精品文档】【精品文档】C) 【精品文档】【精品文档】Pricesdon'tadjust.【精品文档】【精品文档】D) 【精品文档】【精品文档】Wagesandthepriceleveleventuallyadjusttodevelopfullemployment.【精品文档】【精品文档】E) 【精品文档】【精品文档】Wagesdon'tadjust.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】6) 【精品文档】【精品文档】Intheshort-run,weassumethatthemoneypricesofgoodsandservicesare【精品文档】【精品文档】A) 【精品文档】【精品文档】temporarilyfixed.【精品文档】【精品文档】B) 【精品文档】【精品文档】permanentlyfixed.【精品文档】【精品文档】C) 【精品文档】【精品文档】allowedtofluctuate.【精品文档】【精品文档】D) 【精品文档】【精品文档】equaltolong-runprices.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】7) 【精品文档】【精品文档】WhatwouldbethebestdescriptionofwhatweassumeaboutmoneypricesintheShortrun?【精品文档】【精品文档】A) 【精品文档】【精品文档】Moneypricesofgoodsandservicesvary.【精品文档】【精品文档】B) 【精品文档】【精品文档】Moneypricesofgoodsandservicesnotrelatedtoeachother.【精品文档】【精品文档】C) 【精品文档】【精品文档】Moneypricesofgoodsareonlytemporarilyfixed.【精品文档】【精品文档】D) 【精品文档】【精品文档】Moneypricesofservicesareonlytemporarilyfixed.【精品文档】【精品文档】E) 【精品文档】【精品文档】CandD.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】16.4 【精品文档】【精品文档】OutputMarketEquilibriumintheShortRun:TheDDSchedule【精品文档】【精品文档】1) 【精品文档】【精品文档】Intheshort-run,atemporaryincreaseinmoneysupply【精品文档】【精品文档】A) 【精品文档】【精品文档】shiftstheDDcurvetotheright,increasesoutputandappreciatesthecurrency.【精品文档】【精品文档】B) 【精品文档】【精品文档】shiftstheAAcurvetotheleft,increasesoutputanddepreciatesthecurrency.【精品文档】【精品文档】C) 【精品文档】【精品文档】shiftstheAAcurvetotheleft,decreasesoutputanddepreciatesthecurrency.【精品文档】【精品文档】D) 【精品文档】【精品文档】shiftstheAAcurvetotheleft,increasesoutputandappreciatesthecurrency.【精品文档】【精品文档】E) 【精品文档】【精品文档】shiftstheAAcurvetotheright,increasesoutputanddepreciatesthecurrency.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】TheDDscheduleshowsallcombinationsofwhich2variablessothattheoutputmarketisinequilibrium?【精品文档】【精品文档】A) 【精品文档】【精品文档】importsandexports【精品文档】【精品文档】B) 【精品文档】【精品文档】exportsandtheexchangerate【精品文档】【精品文档】C) 【精品文档】【精品文档】foreignpricesandtheexchangerate【精品文档】【精品文档】D) 【精品文档】【精品文档】outputandtheexchangerate【精品文档】【精品文档】E) 【精品文档】【精品文档】outputandexports【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】3) 【精品文档】【精品文档】WhichofthefollowingdoesnotaffectthepositionoftheDDcurve?【精品文档】【精品文档】A) 【精品文档】【精品文档】monetarypolicy【精品文档】【精品文档】B) 【精品文档】【精品文档】governmentspending【精品文档】【精品文档】C) 【精品文档】【精品文档】taxes【精品文档】【精品文档】D) 【精品文档】【精品文档】exportDemand【精品文档】【精品文档】E) 【精品文档】【精品文档】pricelevels【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】4) 【精品文档】【精品文档】Temporarytaxcutswouldcause:【精品文档】【精品文档】A) 【精品文档】【精品文档】theAA-curvetoshiftleft.【精品文档】【精品文档】B) 【精品文档】【精品文档】theAA-curvetoshiftright.【精品文档】【精品文档】C) 【精品文档】【精品文档】theDD-curvetoshiftleft.【精品文档】【精品文档】D) 【精品文档】【精品文档】theDD-curvetoshiftright.【精品文档】【精品文档】E) 【精品文档】【精品文档】ashiftintheAA-curve,althoughthedirectionisambiguous.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】5) 【精品文档】【精品文档】HowwouldyoudefineaDDschedule?【精品文档】【精品文档】A) 【精品文档】【精品文档】thecombinationsofoutputandtheexchangeratethatmustholdwhenthehomemoneymarketandtheforeignexchangemarketareinequilibrium【精品文档】【精品文档】B) 【精品文档】【精品文档】thecombinationsofoutputandtheexchangeratethatmustholdwhentheoutputmarketisinshort-runequilibrium【精品文档】【精品文档】C) 【精品文档】【精品文档】factorsofproductioninthelongrun【精品文档】【精品文档】D) 【精品文档】【精品文档】BothAandB.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】6) 【精品文档】【精品文档】Whichofthefollowingisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】AnydisturbancethatloweraggregatedemandfordomesticoutputshiftstheDDscheduletotheright.【精品文档】【精品文档】B) 【精品文档】【精品文档】AnydisturbancethatlowersaggregatedemandforforeignoutputshiftstheDDscheduletotheleft.【精品文档】【精品文档】C) 【精品文档】【精品文档】AnydisturbancethatraisesaggregatedemandfordomesticoutputshiftstheDDscheduletotheright.【精品文档】【精品文档】D) 【精品文档】【精品文档】AnydisturbancethatraisesaggregatedemandfordomesticoutputshiftstheDDscheduletotheleft.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】7) 【精品文档】【精品文档】DiscussthemainfactorsaffectingthepositionoftheDDschedule.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Thelevelofgovernmentdemand,taxes,andinvestment;thedomesticandforeignpricelevels;variationsindomesticconsumptionbehavior;andtheforeigndemandforhomeoutput.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】8) 【精品文档】【精品文档】Give4examplesofsituationsthatwouldcausetheDD-curvetoshifttotheleft.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Correctanswersincludeanysituationsthatinvolve:(1)andecreaseingovernmentspending(eg.Decreaseinmilitaryspending)(2)anincreaseintaxes(3)afallinInvestmentdemand(4)apriceincrease,whichwouldlowernetexportdemand(assumingEandPstayconstant)(5)afallinforeignprices(assumingEandPstayconstant)(6)anautonomousfallinconsumptiondemand(aslongasitisnotentirelyachangeinimportdemand)(7)ashifttodemandingmoreforeigngoodsattheexpenseofdomesticgooddemand【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】9) 【精品文档】【精品文档】ExplainwhatarethefactorsthatshifttheDDSchedule.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Achangeingovernmentdemand,changeinTaxes,achangeininvestment,changeindomesticprices,changeinforeignprices,changesintheconsumptionfunctionandademandshiftbetweenforeignanddomesticgoods.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】16.5 【精品文档】【精品文档】AssetMarketEquilibriumintheShortRun:TheAASchedule【精品文档】【精品文档】1) 【精品文档】【精品文档】HowistheAAschedulederived?【精品文档】【精品文档】A) 【精品文档】【精品文档】TheAAschedulehasapositiveslopebecauseanincreaseinoutputleadstoadepreciationofthecurrency.【精品文档】【精品文档】B) 【精品文档】【精品文档】TheAAschedulehasanegativeslopebecauseanincreaseinoutputleadstoadecreaseinthedomesticinterestrate.【精品文档】【精品文档】C) 【精品文档】【精品文档】TheAAschedulehasanegativeslopebecauseanincreaseinoutputleadstoanincreaseinthedomesticinterestrateandadomesticcurrencyappreciation.【精品文档】【精品文档】D) 【精品文档】【精品文档】TheAAschedulehasapositiveslopebecauseanincreaseinthemoneysupplyleadstoanincreaseinthedomesticinterestrate.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Whichoneofthefollowingstatementsismostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Inthelongrun,foreignoutputdependsonlyontheavailabledomesticsuppliesoffactorsofproduction.【精品文档】【精品文档】B) 【精品文档】【精品文档】Intheshortrun,domesticoutputdependsonlyontheavailabledomesticsuppliesoffactorsofproduction.【精品文档】【精品文档】C) 【精品文档】【精品文档】Inthelongrun,domesticoutputdependsonlyontheavailabledomesticsuppliesoffactorsofproduction.【精品文档】【精品文档】D) 【精品文档】【精品文档】Inthelongrunandintheshortrun,domesticoutputdependsonlyontheavailabledomesticsuppliesoffactorsofproduction.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】3) 【精品文档】【精品文档】Intheshort-run,atemporaryincreaseinthemoneysupply【精品文档】【精品文档】A) 【精品文档】【精品文档】shiftstheAAcurvetotheright,increasesoutputanddepreciatesthecurrency.【精品文档】【精品文档】B) 【精品文档】【精品文档】shiftstheAAcurvetotheleft,increasesoutputanddepreciatesthecurrency.【精品文档】【精品文档】C) 【精品文档】【精品文档】shiftstheAAcurvetotheleft,decreasesoutputanddepreciatesthecurrency.【精品文档】【精品文档】D) 【精品文档】【精品文档】shiftstheAAcurvetotheleft,increasesoutputandappreciatesthecurrency.【精品文档】【精品文档】E) 【精品文档】【精品文档】shiftstheAAcurvetotheright,increasesoutputandappreciatesthecurrency.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】4) 【精品文档】【精品文档】Equilibriumoutputisdeterminedfromthefollowingequation(s):【精品文档】【精品文档】A) 【精品文档】【精品文档】Y=C(Yd)+I+G+CA(EP*/P,Yd).【精品文档】【精品文档】B) 【精品文档】【精品文档】Y=C(Y-T)+I+G+CA(EP*/P,Y-T).【精品文档】【精品文档】C) 【精品文档】【精品文档】Y=D(EP*/P,Y-T,I,G).【精品文档】【精品文档】D) 【精品文档】【精品文档】AandC.【精品文档】【精品文档】E) 【精品文档】【精品文档】A,B,andC.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】【精品文档】\n【精品文档】5) 【精品文档】【精品文档】Theinterestparityconditionrequiresthat:【精品文档】【精品文档】A) 【精品文档】【精品文档】allcountrieshavethesameinterestrate.【精品文档】【精品文档】B) 【精品文档】【精品文档】thereisauniqueexchangerateforeveryoutputlevel.【精品文档】【精品文档】C) 【精品文档】【精品文档】purchasingpowerparityhold.【精品文档】【精品文档】D) 【精品文档】【精品文档】interestratesarefixedintheshortrun.【精品文档】【精品文档】E) 【精品文档】【精品文档】themoneysupplyisheldconstant.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】6) 【精品文档】【精品文档】HowistheAAschedulederived?【精品文档】【精品文档】A) 【精品文档】【精品文档】Itisderivedbythescheduleofinterestrateandoutputcombinationsthatareconsistentwithequilibriuminthedomesticmoneymarketandtheforeignexchangemarket.【精品文档】【精品文档】B) 【精品文档】【精品文档】Itisderivedbythescheduleofexchangerateandoutputcombinationsthatareconsistentwithequilibriumintheforeignmoneymarketandthedomesticexchangemarket.【精品文档】【精品文档】C) 【精品文档】【精品文档】Itisderivedbythescheduleofexchangerateandoutputcombinationsthatareconsistentwithequilibriuminthedomesticmoneymarketandtheforeignexchangemarket.【精品文档】【精品文档】D) 【精品文档】【精品文档】Itisderivedbythescheduleofexchangerateandoutputcombinationsthatareconsistentwithequilibriuminthedomesticbondmarketandtheforeignassetmarket.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】7) 【精品文档】【精品文档】ExplainhowtheAAscheduleisderived.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Forafixedrealmoneysupply,anincreaseinoutputleadstoanincreaseinthedomesticinterestrate.Intheforeignexchangemarket,anincreaseinthedomesticinterestrateleadstoalowernominalexchangerate,thusappreciatingthecurrency.Therefore,therelationshipbetweennominalexchangerateandoutputisnegative;thisleadstoanegativeslopeoftheAAschedule,whichhasthenominalexchangerateandoutputonitsaxes.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】8) 【精品文档】【精品文档】DiscussthemainfactorsaffectingthepositionoftheAAschedule.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Changesinthedomesticmoneysupply;changesinthedomesticpricelevel;changesintheexpectedfutureexchangerate;changesintheforeigninterestrate;andshiftsintheaggregaterealmoneydemandschedule.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】9) 【精品文档】【精品文档】WhatistheAA-curve?Whydoesithaveanegativeslope?Whatfactorscauseittoshift?P.219【精品文档】【精品文档】Answer: 【精品文档】【精品文档】TheAA-curveisthespecificlevelsofEandYunderwhichthemoneyandforeignexchangemarketsareinequilibrium.TheAA-curvehasanegativeslopebecauseanincreaseinYwillcauseEtofall(adomesticcurrencyappreciation).Thefactorsthataffectitare:themoneysupply,pricelevel,expectedexchangerate,foreigninterestrates,andthelevelofrealmoneydemand.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】10) 【精品文档】【精品文档】ExplainwhatarethefactorsthatshifttheAASchedule?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Changesinthedomesticmoneysupply;changesinthedomesticpricelevel;changesintheexpectedfutureexchangerates;changesintheforeigninterestrateandshiftsintheaggregaterealmoneydemand.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】16.6 【精品文档】【精品文档】Short-RunEquilibriumforanOpenEconomy:PuttingtheDDandAASchedulesTogether【精品文档】【精品文档】1) 【精品文档】【精品文档】ImaginethattheeconomyisatapointontheDD-AAschedulethatisabovebothAAandDD,whereboththeoutputandassetmarketsareoutofequilibrium.Whichfirstactionistrue?【精品文档】【精品文档】A) 【精品文档】【精品文档】Theeconomywillstayatthislevelintheshortrun.【精品文档】【精品文档】B) 【精品文档】【精品文档】TheexchangeratewillfirstdroptoapointontheAAschedule.【精品文档】【精品文档】C) 【精品文档】【精品文档】TheexchangeratewillfirstmovetoapointontheDDschedule.【精品文档】【精品文档】D) 【精品文档】【精品文档】TheAA-DDequilibriumwillshifttothepositionoftheeconomy.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Whichofthefollowinghavetobeinequilibriumfortheeconomytobeinequilibrium?【精品文档】【精品文档】A) 【精品文档】【精品文档】themoneymarketonly【精品文档】【精品文档】B) 【精品文档】【精品文档】thegoodsmarketonly【精品文档】【精品文档】C) 【精品文档】【精品文档】theoutputandassetsmarkets【精品文档】【精品文档】D) 【精品文档】【精品文档】thesavingsandinvestmentmarkets【精品文档】【精品文档】E) 【精品文档】【精品文档】thegoodsandoutputmarkets【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】3) 【精品文档】【精品文档】Assumetheassetmarketisalwaysinequilibrium.ThereforeafallinYwouldresultin:【精品文档】【精品文档】A) 【精品文档】【精品文档】higherinflationabroad.【精品文档】【精品文档】B) 【精品文档】【精品文档】adecreaseddemandfordomesticproducts.【精品文档】【精品文档】C) 【精品文档】【精品文档】acontractionofthemoneysupply.【精品文档】【精品文档】D) 【精品文档】【精品文档】adepreciationofthehomecurrency.【精品文档】【精品文档】E) 【精品文档】【精品文档】anappreciationofthehomecurrency.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】4) 【精品文档】【精品文档】Whydoesanexchangerate-outputcombinationlyingabovebothDDandAAjumpfirsttoAAinequilibrium?【精品文档】【精品文档】A) 【精品文档】【精品文档】Assetpricescanadjustimmediately.【精品文档】【精品文档】B) 【精品文档】【精品文档】Productionplanscanadjustimmediately.【精品文档】【精品文档】C) 【精品文档】【精品文档】topreservefullemployment【精品文档】【精品文档】D) 【精品文档】【精品文档】Pricesarenominalanddemandisreal.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】5) 【精品文档】【精品文档】ExplainhowwouldanincreaseingovernmentspendingaffecttheDD-AAscheduleintheshortrun.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Anincreaseingovernmentspendingwillincreaseaggregatedemand,whichwillshifttheDDtotheright.IfAAremainsunchanged,thenewequilibriumwillbeatahigherYandlowerE.SinceEisthenominalexchangerate,alowerEisanappreciationofthecurrency.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】6) 【精品文档】【精品文档】ImaginethattheeconomyisatapointontheDD-AAschedulethatisabovebothAAandDDandwhereboththeoutputandassetmarketsareoutofequilibrium.Explainwhatwillhappennext?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Sincetheassetmarketadjustsveryquickly,theexchangeratedropsimmediatelytoapointontheAAschedule.Therewillbeexcessdemandforthedomesticcurrencybecausethehighexpectedfutureappreciationrateofthedomesticcurrencyimpliesthattheexpecteddomesticcurrencyreturnonforeigndepositsisbelowthatondomesticdeposits.Thisexcessdemandleadstoanimmediatefallintheexchangerate.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】7) 【精品文档】【精品文档】AnaïveimplicationoftheDD-AAframeworkisthateitherfiscalormonetarypolicycanleadtofullemployment.Discusswhythisviewisnaïve.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】(1)Inflationmayarisewithoutanygaininoutputifthegovernmentmisusesitspowertoprintmoney.(2)Inpractice,itissometimeshardtobesurewhetheradisturbancetotheeconomyoriginatesintheoutputorassetsmarkets.(3)Shiftsinfiscalpolicyoftencanbemadeonlyafterlengthylegislativedeliberations.Governmentsarelikelytorespondtodisturbancesbychangingthemonetarypolicyevenwhenashiftinfiscalpolicywouldbemoreappropriate.(4)Fiscalpolicyimpactsthegovernmentbudgetandmayleadtogovernmentbudgetdeficitthatmustbesoonerorlaterbeclosedbyafiscalreversal.Thestateoftheelectoralcyclemaybemoreimportant.(5)Policiesoperateinrealitywithlagsofvaryinglength.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】8) 【精品文档】【精品文档】Useafiguretostudythefollowingquestion:ImaginethattheeconomyisatapointontheDD-AAschedulethatisabovebothAAandDD,whereboththeoutputandassetmarketsareoutofequilibrium.Explainwhatwillhappennext.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Sincetheassetmarketadjustsveryquickly,theexchangeratedropsimmediatelytoapointontheAAschedule.Therewillbeexcessdemandforthedomesticcurrencybecausethehighexpectedfutureappreciationrateofthedomesticcurrencyimpliesthattheexpecteddomesticcurrencyreturnonforeigndepositsisbelowthatondomesticdeposits.Thisexcessdemandleadstoanimmediatefallintheexchangerate.Thefigure:【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】16.7 【精品文档】【精品文档】TemporaryChangeinMonetaryandFiscalPolicy【精品文档】【精品文档】1) 【精品文档】【精品文档】Intheshortrun,withpricesfixed,howwouldanincreaseingovernmentspendingaffecttheDD-AAschedule?【精品文档】【精品文档】A) 【精品文档】【精品文档】Itwillincreaseoutputandappreciatethecurrency.【精品文档】【精品文档】B) 【精品文档】【精品文档】Itwillincreaseoutputanddepreciatethecurrency.【精品文档】【精品文档】C) 【精品文档】【精品文档】Itwilldecreaseoutputandappreciatethecurrency.【精品文档】【精品文档】D) 【精品文档】【精品文档】Itwilldecreaseoutputanddepreciatethecurrency.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Intheshort-run,anincreaseingovernmentpurchasescauses【精品文档】【精品文档】A) 【精品文档】【精品文档】ashiftoftheDDcurvetotheleft,outputincreases【精品文档】【精品文档】B) 【精品文档】【精品文档】ashiftoftheDDcurvetotheright,outputdecreases【精品文档】【精品文档】C) 【精品文档】【精品文档】ashiftoftheDDcurvetotheleft,outputdecreases【精品文档】【精品文档】D) 【精品文档】【精品文档】ashiftoftheDDcurvetotheright,outputincreases【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】3) 【精品文档】【精品文档】Whataretwowaysthegovernmentcanusetomaintainfullemploymentinanopeneconomy?Alsogiveanexampleforeach.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Therearetwotypesofgovernmentpolicy,monetaryandfiscalpolicy.Examplesofmonetarypolicyarechangesinthemoneysupply.Examplesoffiscalpolicyarechangesingovernmentspendingortaxes.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】4) 【精品文档】【精品文档】Usingafigureshowthatunderfullemployment,atemporaryfiscalexpansionwouldincreaseoutput(over-employment)butcannotincreaseoutputinthelongrun.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】AtemporarilyfiscalexpansionwillmovetheeconomyfromDD1toDD2,andoutputincreases.ApermanentfiscalexpansionwillalsoshifttheAAcurvetotheleftanddown.Thenominalexchangerateappreciates,i.e.Edecreases.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】16.8 【精品文档】【精品文档】InflationBiasandOtherProblemsofPolicyFormulation【精品文档】【精品文档】1) 【精品文档】【精品文档】Whatisinflationbias?Whatmeasureshavegovernmentstakentoavoidit?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Inflationbiasiscausedwhenagovernmentisexpectedtousepolicytoolstocreateaneconomicexpansion(suchasbeforeanelection).Becauseitisexpected,wagesandthereforepricesareincreased.Ifthegovernmentdidnotpursuetheexpansionarypolicythen,therewouldbearecession!Inflationisincreasedwithouttheadvantageofanincreaseinoutput.Makingthecentralbankindependentofthepoliticalgovernmentisoneanswertoavoidinflationbias.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Explainandgivesomegovernmentalpolicyproblems?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Steadynominalpricesgivegovernmentthepowertoraiseoutputwhenitislow.Itcanalsocausethemtocreateatoolthatcanbeusedforaneconomicboom.Anexampleisjustbeforeanelection.Thetemptationcanbeaproblemwhenworkersandcompaniesexpectitinadvance.Thiswillcauseariseinwagedemandandpricesintheexpectedexpansionarypolicies.Aninflationbiascausinghighinflationbutnoaveragegainsinoutputisalsoaproblem.Othersarethedifficultyinshowingthesourcesortimeofeconomicchanges,andtimelagsinimplementingpolicies.Impactonthegovernmentbudgetbyfiscalpolicyalsocausesproblemsbythewayofataxcut;increaseinspendingmayleadtoagovernmentbudgetdeficitthatmustsoonerorlaterbeclosedbyafiscalreversal.Policyproblemthatseemtoactquicklyhaveactuallyalagtimewithvaryinglengths.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】16.9 【精品文档】【精品文档】PermanentShiftsinMonetaryandFiscalPolicy【精品文档】【精品文档】1) 【精品文档】【精品文档】Iftheeconomystartsinlong-runequilibrium,apermanentfiscalexpansionwillcause【精品文档】【精品文档】A) 【精品文档】【精品文档】anincreaseinexchangerate,E.【精品文档】【精品文档】B) 【精品文档】【精品文档】adecreaseinexchangerate,E.【精品文档】【精品文档】C) 【精品文档】【精品文档】anincreaseinoutput,Y.【精品文档】【精品文档】D) 【精品文档】【精品文档】adecreaseinoutput,Y.【精品文档】【精品文档】E) 【精品文档】【精品文档】shiftingoftheAAcurveupandtotheright.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Inthelong-runequilibrium,afterapermanentmoney-supplyincreasetherefollows:【精品文档】【精品文档】A) 【精品文档】【精品文档】anincreaseinexchangerate,E.【精品文档】【精品文档】B) 【精品文档】【精品文档】adecreaseinexchangerate,E.【精品文档】【精品文档】C) 【精品文档】【精品文档】anincreaseinoutput,Y.【精品文档】【精品文档】D) 【精品文档】【精品文档】adecreaseinoutput,Y.【精品文档】【精品文档】E) 【精品文档】【精品文档】BothBandD.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】3) 【精品文档】【精品文档】Whichoneofthefollowingstatementsisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Overtime,theinflationarypressurethatfollowsatemporarymoneysupplyexpansionpushesthepriceleveltoitslong-runvalueandreturnstheeconomytofullemployment.【精品文档】【精品文档】B) 【精品文档】【精品文档】Overtime,theinflationarypressurethatfollowsapermanentmoneysupplyexpansionpushesthepriceleveltoitslong-runvalueandreturnstheeconomytofullemployment.【精品文档】【精品文档】C) 【精品文档】【精品文档】Overtime,theinflationarypressurethatfollowsatemporarymoneysupplyexpansionpushesthepriceleveltoitslong-runvalue,butleavestheeconomyinastateofartificiallylowemployment.【精品文档】【精品文档】D) 【精品文档】【精品文档】Overtime,theinflationarypressurethatfollowsapermanentmoneysupplyexpansionpushesthepriceleveltoitslong-runvalue,butleavestheeconomyinastateofartificiallylowemployment.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】4) 【精品文档】【精品文档】UsingtheDD-AAframework,whichoneofthefollowingstatementsisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Onlymonetarypolicycanbringtheeconomytofullemployment.【精品文档】【精品文档】B) 【精品文档】【精品文档】Onlyfiscalpolicycanbringtheeconomytofullemployment.【精品文档】【精品文档】C) 【精品文档】【精品文档】Onlybothmonetaryandfiscalpoliciescanbringtheeconomytofullemployment.【精品文档】【精品文档】D) 【精品文档】【精品文档】Neitherpolicyiscapableofbringingtheeconomytofullemployment.【精品文档】【精品文档】E) 【精品文档】【精品文档】Monetarypolicybyitselforfiscalpolicybyitselfcanbringtheeconomytofullemployment.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】5) 【精品文档】【精品文档】Whichoneofthefollowingstatementsisthemostaccurate?【精品文档】【精品文档】A) 【精品文档】【精品文档】Apermanentincreaseinthemoneysupplycannothaveanyshort-runeffects.【精品文档】【精品文档】B) 【精品文档】【精品文档】Apermanentincreaseintaxescannothaveanyshort-runeffects.【精品文档】【精品文档】C) 【精品文档】【精品文档】Apermanentdecreaseinthemoneysupplycannothaveshort-runeffects.【精品文档】【精品文档】D) 【精品文档】【精品文档】Apermanentdecreaseintaxescannothaveshort-runeffects.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】6) 【精品文档】【精品文档】Apermanentincreaseinthedomesticmoneysupply【精品文档】【精品文档】A) 【精品文档】【精品文档】mustultimatelyleadtoaproportionaldecreaseinE,and,therefore,theexpectedfutureexchangeratemustriseproportionally.【精品文档】【精品文档】B) 【精品文档】【精品文档】mustultimatelyleadtoaproportionaldecreaseinE,and,therefore,theexpectedfutureexchangeratemustdecreaseproportionally.【精品文档】【精品文档】C) 【精品文档】【精品文档】mustultimatelyleadtoaproportionalriseinE,and,therefore,theexpectedfutureexchangeratemustriseproportionally.【精品文档】【精品文档】D) 【精品文档】【精品文档】mustultimatelyleadtoaproportionalriseinE,and,therefore,theexpectedfutureexchangeratemustrisemorethanproportionally.【精品文档】【精品文档】E) 【精品文档】【精品文档】mustultimatelyleadtoaproportionalriseinE,and,therefore,theexpectedfutureexchangeratemustriselessthanproportionally.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】7) 【精品文档】【精品文档】Intheshortrun,apermanentincreaseinthedomesticmoneysupplycauses【精品文档】【精品文档】A) 【精品文档】【精品文档】agreaterupwardshiftintheDDcurvethanthatcausedbyanequal,buttransitory,increase.【精品文档】【精品文档】B) 【精品文档】【精品文档】agreaterdownwardshiftintheAAcurvethanthatcausedbyanequal,buttransitory,increase.【精品文档】【精品文档】C) 【精品文档】【精品文档】ansmallerupwardshiftintheAAcurvethanthatcausedbyanequal,buttransitory,increase.【精品文档】【精品文档】D) 【精品文档】【精品文档】asmallerdownwardshiftintheAAcurvethanthatcausedbyanequal,buttransitory,increase.【精品文档】【精品文档】E) 【精品文档】【精品文档】agreaterupwardshiftintheAAcurvethanthatcausedbyanequal,buttransitory,increase.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】\n【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】8) 【精品文档】【精品文档】Intheshortrun,apermanentincreaseinthedomesticmoneysupply【精品文档】【精品文档】A) 【精品文档】【精品文档】hasstrongereffectsontheexchangerateandoutputthananequaltemporaryincrease.【精品文档】【精品文档】B) 【精品文档】【精品文档】hasstrongereffectsonlyontheexchangeratebutnotonoutputthananequaltemporaryincrease.【精品文档】【精品文档】C) 【精品文档】【精品文档】hasweakereffectsontheexchangerateandoutputthananequaltemporaryincrease.【精品文档】【精品文档】D) 【精品文档】【精品文档】hasstrongereffectsonoutput,butlowereffecttheexchangeratethananequaltemporaryincrease.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】9) 【精品文档】【精品文档】Apermanentfiscalexpansion【精品文档】【精品文档】A) 【精品文档】【精品文档】shiftstheDDandtheAAschedulestotheright,increasingoutput.【精品文档】【精品文档】B) 【精品文档】【精品文档】shiftstheDDandtheAAschedulestotheright,decreasingoutput.【精品文档】【精品文档】C) 【精品文档】【精品文档】shiftstheDDtotherightandtheAAscheduletotheleft,increasingoutput.【精品文档】【精品文档】D) 【精品文档】【精品文档】shiftstheDDtotheleftandtheAAscheduletotheleft,decreasingoutput.【精品文档】【精品文档】E) 【精品文档】【精品文档】shiftstheDDandtheAAschedulestotheleft,leavingoutputthesame.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】10) 【精品文档】【精品文档】Explainthefollowingfigure:【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Thefiguredepictstheeffectofapermanentincreaseinthemoneysupplystartingfromfullemploymentequilibrium.AftertheinitialincreaseinthemoneysupplyandthemoveoftheAAcurvetotherightfromAA1toAA2,asteadilyincreasingpricelevelshiftstheAAandtheDDschedulestotheleftuntilanewlong-runequilibriumisreached.Notethatpoint3isabovepoint1,becauseEeispermanentlyhigherafterapermanentincreaseinthemoneysupply.Theexpectedexchangerate,Ee,hasrisenbythesamepercentageasMs.Noticethatalongtheadjustmentpathbetweentheinitialshort-runequilibrium(point2)andthelong-runequilibrium(point3)thedomesticcurrencyactuallyappreciates(fromE2toE3)followingitsinitialsharpdepreciation(fromE1toE2).【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】11) 【精品文档】【精品文档】UsingtheDD-AAframework,showthephenomenonofovershooting.Useafiguretoexplainwhenitistakingplace.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Thefigurebelowshowsthephenomenonofovershooting.ApermanentincreaseinthemoneysupplystartingfromfullemploymentequilibriumwillshifttheAAcurvetotherightfromAA1toAA2.Now,asteadilyincreasingpricelevelshiftstheAAandtheDDschedulestotheleftuntilanewlong-runequilibriumisreached.Notethatpoint3isabovepoint1,becauseEeispermanentlyhigherafterapermanentincreaseinthemoneysupply.Theexpectedexchangerate,Ee,hasrisenbythesamepercentageasMs.Noticethatalongtheadjustmentpathbetweentheinitialshort-runequilibrium(point2)andthelong-runequilibrium(point3)thedomesticcurrencyactuallyappreciates(fromE2toE3)followingitsinitialsharpdepreciation(fromE1toE2).Thisexchangeratebehaviorisanexampleofovershooting,inwhichtheexchangerate'sinitialresponsetosomechangeisgreaterthanitslong-runresponse.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】12) 【精品文档】【精品文档】Demonstratehowapermanentfiscalexpansionwillnotincreaseoutputinthelongrun.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】(1)EonY-axis,YonX-axis(2)DDshiftsright(3)temporaryequilibriumwhereElowerandYincreased(4)permanentincreaseindemandcausedbyincreaseinGcausescurrencytoappreciate:AAshiftsleft(5)thereforeYreturnstooriginallevels,EdecreasesevenmoreRESULTofpermanentfiscalexpansion:currencyappreciation,outputdoesnotchange.Thiseffectiscalled"crowdingout."【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】13) 【精品文档】【精品文档】Showtheeffectsofapermanentincreaseinthemoneysupply.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】(1)AA-shiftsright-increaseinYandEbothhigherthanifmoneysupplychangewastemporaryrisingpricelevelmakesADdecrease,DDshiftsleft(2)risingpricesalsoreducerealmoneysupply,soAAshiftsleft(althoughnotallthewaybacktooriginalposition)(3)AAandDDreachshortrunequilibriumatanEthatishigherthaninitially,butlowerthantheshortruneffectsoftheshift.(4)OutputreturnstoinitiallevelbecausehigherpricesreversedtheeffectoftheinitialdepreciationonAggregateDemand.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】14) 【精品文档】【精品文档】UsingtheDDmodel,explainwhathappenstooutputwhenGovernmentdemandsincrease.Useafiguretoexplainwhenitistakingplace.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】ThefigurebelowshowstheG1toG2raisesoutputateveryleveloftheexchangerate.ThechangeshiftstheDDtotheright.WhichinturnsincreasesoutputtoY2.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】16.10 【精品文档】【精品文档】MacroeconomicPoliciesandtheCurrentAccount【精品文档】【精品文档】1) 【精品文档】【精品文档】Whichofthefollowingaretrueintermsofthecurrentaccountbalance?【精品文档】【精品文档】A) 【精品文档】【精品文档】Monetaryexpansionincreasesthecurrentaccountbalance.【精品文档】【精品文档】B) 【精品文档】【精品文档】Monetaryexpansiondecreasesthecurrentaccountbalance.【精品文档】【精品文档】C) 【精品文档】【精品文档】Fiscalexpansionincreasesthecurrentaccountbalance.【精品文档】【精品文档】D) 【精品文档】【精品文档】Fiscalexpansiondecreasesthecurrentaccountbalance.【精品文档】【精品文档】E) 【精品文档】【精品文档】BothAandD.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】Intheshortrun:【精品文档】【精品文档】A) 【精品文档】【精品文档】monetaryexpansioncausestheCAincrease&fiscalexpansioncausestheCAtodecrease.【精品文档】【精品文档】B) 【精品文档】【精品文档】monetaryexpansioncausestheCAtodecrease&fiscalexpansioncausestheCAtodecrease.【精品文档】【精品文档】C) 【精品文档】【精品文档】monetaryexpansioncausestheCAtoincrease&fiscalexpansioncausestheCAtoincrease.【精品文档】【精品文档】D) 【精品文档】【精品文档】monetaryexpansioncausestheCAtodecrease&fiscalexpansioncausestheCAtoincrease.【精品文档】【精品文档】E) 【精品文档】【精品文档】monetaryexpansioncausestheCAtoincrease&theeffectsoffiscalexpansionareambiguous.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】3) 【精品文档】【精品文档】Whichstatementbestdescribesthecurrentaccountbalanceintheshortrun?【精品文档】【精品文档】A) 【精品文档】【精品文档】Monetaryexpansionlowersthecurrentaccountbalance.【精品文档】【精品文档】B) 【精品文档】【精品文档】Monetaryexpansionkeepsthecurrentaccountbalancethesame.【精品文档】【精品文档】C) 【精品文档】【精品文档】Fiscalexpansionincreasesthecurrentaccountbalance.【精品文档】【精品文档】D) 【精品文档】【精品文档】Fiscalexpansionkeepsthecurrentaccountbalancethesame.【精品文档】【精品文档】E) 【精品文档】【精品文档】Monetaryexpansionincreasesthecurrentaccountbalance.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】E【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】16.11 【精品文档】【精品文档】GradualTradeFlowAdjustmentandCurrentAccountDynamics【精品文档】【精品文档】1) 【精品文档】【精品文档】Accordingtohistoricaldata,whatistheeffectofasharpchangeinthecurrentaccountontheexchangerate(bothintheshortandlongrun)?【精品文档】【精品文档】A) 【精品文档】【精品文档】Atfirst,homecurrencywilldepreciateasCAbalancefalls,butovertime,currencywillbegintodepreciate.【精品文档】【精品文档】B) 【精品文档】【精品文档】Atfirst,homecurrencywillappreciateasCAbalancefalls,butovertime,currencywillbegintodepreciate.【精品文档】【精品文档】C) 【精品文档】【精品文档】Atfirst,homecurrencywillappreciateasCAbalancerises,butovertime,currencywillbegintodepreciate.【精品文档】【精品文档】D) 【精品文档】【精品文档】Atfirst,homecurrencywilldepreciateasCAbalancefalls,butovertime,currencywillbegintoappreciate.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】2) 【精品文档】【精品文档】WhichtwotimeperiodsdidtheU.S.begintoexperienceasharpincreaseinCurrentAccountdeficits?【精品文档】【精品文档】A) 【精品文档】【精品文档】1981,mid-1990s【精品文档】【精品文档】B) 【精品文档】【精品文档】1971,mid-1990s【精品文档】【精品文档】C) 【精品文档】【精品文档】1961,mid-1990s【精品文档】【精品文档】D) 【精品文档】【精品文档】1971,mid-1980s【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】A【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】3) 【精品文档】【精品文档】TheJ-curveillustrateswhichofthefollowing?【精品文档】【精品文档】A) 【精品文档】【精品文档】theeffectsofdepreciationonthehomecountry'seconomy【精品文档】【精品文档】B) 【精品文档】【精品文档】theimmediateincreaseincurrentaccountcausedbyacurrencydepreciation【精品文档】【精品文档】C) 【精品文档】【精品文档】thegradualadjustmentofhomepricestoacurrencydepreciation【精品文档】【精品文档】D) 【精品文档】【精品文档】theshort-termeffectsofdepreciationonthecurrentaccount【精品文档】【精品文档】E) 【精品文档】【精品文档】theKeynesianviewofinternationaltradedynamics【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】4) 【精品文档】【精品文档】TheMarshall-LernerConditionstatesthat,allelseequal,【精品文档】【精品文档】A) 【精品文档】【精品文档】nominalappreciationimprovesthecurrentaccountifexportandimportvolumesaresufficientlyelasticwithrespecttotherealexchangerate.【精品文档】【精品文档】B) 【精品文档】【精品文档】realdepreciationimprovesthecurrentaccountifexportandimportvolumesaresufficientlyinelasticwithrespecttotherealexchangerate.【精品文档】【精品文档】C) 【精品文档】【精品文档】realappreciationimprovesthecurrentaccountifexportandimportvolumesaresufficientlyelasticwithrespecttotherealexchangerate.【精品文档】【精品文档】D) 【精品文档】【精品文档】realdepreciationimprovesthecurrentaccountifexportandimportvolumesaresufficientlyelasticwithrespecttotherealexchangerate.【精品文档】【精品文档】E) 【精品文档】【精品文档】thesumofimportandexportelasticitiesmustbeequaltooneinorderfordepreciationtooccur.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】D【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】【精品文档】【精品文档】\n【精品文档】5) 【精品文档】【精品文档】Thepercentbywhichimportpricesrisewhenthehomecurrencydepreciatesby1%isthedegreeof【精品文档】【精品文档】A) 【精品文档】【精品文档】pass-forwardfromexchangeratestoimportprices.【精品文档】【精品文档】B) 【精品文档】【精品文档】pass-throughfromexchangeratestoimportprices.【精品文档】【精品文档】C) 【精品文档】【精品文档】pass-onfromexchangeratestoimportprices.【精品文档】【精品文档】D) 【精品文档】【精品文档】roll-forwardfromexchangeratestoimportprices.【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】B【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】6) 【精品文档】【精品文档】Inpractice,manyU.S.importpricestendtorisebyonlyaround【精品文档】【精品文档】A) 【精品文档】【精品文档】1/4ofatypicaldollardepreciationoverthefollowingyear【精品文档】【精品文档】B) 【精品文档】【精品文档】1/3ofatypicaldollardepreciationoverthefollowingyear【精品文档】【精品文档】C) 【精品文档】【精品文档】1/2ofatypicaldollardepreciationoverthefollowingyear【精品文档】【精品文档】D) 【精品文档】【精品文档】2/3ofatypicaldollardepreciationoverthefollowingyear【精品文档】【精品文档】E) 【精品文档】【精品文档】Noneoftheabove.【精品文档】【精品文档】Answer: 【精品文档】【精品文档】C【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】New【精品文档】【精品文档】7) 【精品文档】【精品文档】DescribewhatisaJCurve?【精品文档】【精品文档】Answer: 【精品文档】【精品文档】Thetimelagwithwhichrealcurrencydepreciationimprovesthecurrentaccount.Thecurrentaccountismeasuredintermsofdomesticoutput,andcandropquicklyrightafterrealcurrencydepreciationbecausemostimportandexportordersareplacedseveralmonthsinadvance.Inthefirstfewmonthsafterthedepreciation,exportandimportvolumesthereforemayreflectbuyingdecisionsthatweremadeonthebasisoftheoldrealexchangerate.【精品文档】【精品文档】QuestionStatus: 【精品文档】【精品文档】PreviousEdition【精品文档】