中级宏观经济学付费版题库14总供给与通货膨胀和失业之间的短期权衡.doc

Name: _ Date: _1.The basic aggregate supply equation implies that output exceeds natural output when the price level is:A)low.B)high.C)less than the expected price level.D)greater than the expected price level.2.Some firms do not instantly adjust the prices they charge in response to changes in demand for all of the following reasons except:A)it is costly to alter prices.B)they do not want to annoy their frequent customers.C)prices do not adjust when there is perfect competition.D)some prices are set by long-term contracts between firms and customers.3.According to the sticky-price model:A)all firms announce their prices in advance.B)all firms set their prices in accord with observed prices and output.C)some firms set their prices according to the aggregate supply equation.D)some firms announce their prices in advance, and some firms set their prices in accord with observed prices and output.4.According to the sticky-price model, other things being equal, the greater the proportion, s, of firms that follow the sticky-price rule, the _ the _ in output in response to an unexpected price increase.A)greater; increaseB)smaller; increaseC)greater; decreaseD)smaller; decrease5.Each of the two models of short-run aggregate supply is based on some market imperfection. In the sticky-price model, the imperfection is that:A)some firms do not adjust their prices instantly to changes in demand.B)expectations are formed adaptively rather than rationally.C)firms confuse changes in the overall level of prices with changes in relative prices.D)the real wage adjusts to bring labor supply and labor demand into equilibrium.6.In the sticky-price model, the relationship between output and the price level depends on:A)the proportion of firms with flexible prices.B)the target real wage rate.C)the target nominal wage rate.D)the implicit agreements between workers and firms.7.Based on the sticky-price model, the short-run aggregate supply curve will be steeper, the greater the:A)target nominal-wage rate.B)target real-wage rate.C)proportion of firms with flexible prices.D)proportion of firms with sticky prices.8.According to the sticky-price model, output will be at the natural level if:A)firms expect a high price level and the demand for goods is high.B)the proportion of firms with flexible prices equals the proportion of firms with sticky prices.C)the price level equals the expected price level.D)expectations are formed adaptively, but not if expectations are formed rationally.9.According to the sticky-price model, deviations of output from the natural level are _ deviations of the price level from the expected price level.A)positively associated withB)negatively associated withC)not related toD)equal to10.The imperfect-information model bases the difference in the short-run and long-run aggregate supply curve on:A)sticky wages.B)sticky prices.C)temporary misperceptions about prices.D)procyclical real wages.11.The imperfect-information model assumes that producers find it difficult to distinguish between changes in:A)real wages and nominal wages.B)the overall level of prices and relative prices.C)the overall level of prices and the expected level of prices.D)cost-push inflation and demand-pull inflation.12.According to the imperfect-information model, when the price level rises by the amount the producer expected it to rise, the producer:A)increases production.B)does not change production.C)decreases production.D)hires more workers.13.Each of the two models of short-run aggregate supply is based on some market imperfection. In the imperfect-information model, the imperfection is that:A)some firms do not adjust their prices instantly to changes in demand.B)contracts and arrangements may prevent nominal wages from adjusting rapidly to changing economic conditions.C)firms confuse changes in the overall level of prices with changes in relative prices.D)the real wage adjusts to bring labor supply and labor demand into equilibrium.14.According to the imperfect-information model, when the price level falls but the producer did not expect it to fall, the producer:A)increases production.B)does not change production.C)decreases production.D)hires more workers.15.After examining international data, the economist Robert Lucas found that aggregate demand has the biggest effect on output in countries where aggregate demand:A)and prices are most stable.B)and prices are most variable.C)is most stable but prices are most variable.D)is most variable but prices are most stable.16.According to the imperfect-information model, in countries in which there is a great deal of variability of prices:A)the response of output to unexpected changes in prices will be relatively large.B)the response of output to unexpected changes in prices will be relatively small.C)output will respond negatively to an unexpected rise in prices.D)output will not respond to an unexpected change in prices.17.Using the sticky-price model, the higher the average rate of inflation, the more frequently firms must adjust their prices, which implies that a high rate of inflation:A)has no effect on the slope of the short-run aggregate supply curve.B)should make the short-run aggregate supply curve flatter.C)makes the short-run aggregate supply curve steeper.D)causes prices to be sticky.18.According to the imperfect-information model, when the price level is greater than the expected price level, output will _ the natural level of outputA)be greater thanB)be less thanC)be equal toD)shift the19.The short-run aggregate supply curve is drawn for a given:A)output level.B)price level.C)expected price level.D)level of aggregate demand.20.Both models of aggregate supply discussed in Chapter 14 imply that if the price level is higher than expected, then output _ natural rate of output.A)exceeds theB)falls below theC)equals theD)moves to a different21.Both models of aggregate supply discussed in Chapter 14 imply that if the price level is lower than expected, then output _ natural rate of output.A)exceeds theB)falls below theC)equals theD)moves to a different22.Starting from the natural level of output, an unexpected monetary contraction will cause output and the price level to _ in the short run; and in the long run the expected price level will _, causing the level of output to return to the natural level.A)increase; increaseB)increase; decreaseC)decrease; decreaseD)decrease; increase23.The model of aggregate demand and aggregate supply is consistent with short-run monetary _ and long-run monetary _.A)neutrality; neutralityB)nonneutrality; nonneutralityC)neutrality; nonneutralityD)nonneutrality; neutrality24.Along an aggregate supply curve, if the level of output is less than the natural level of output, then the price level is:A)greater than the expected price level.B)less than the expected price level.C)equal to the natural price level.D)stuck at the existing price level.25.Along any aggregate supply curve, there is only one:A)unemployment level.B)expected price level.C)inflation level.D)output level.26.Which of the following will shift the aggregate supply curve up to the left?A)an increase in the price levelB)a decrease in the level of outputC)an increase in the expected price levelD)a decrease in the price level27.In the short-run, if the price level is greater than the expected price level, then in the long run the aggregate:A)demand curve will shift leftward.B)demand curve will shift rightward.C)supply curve will shift upward.D)supply curve will shift downward.Use the following to answer questions 28-29:Exhibit: ADAS Shifts28.(Exhibit: ADAS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, if there is an unexpected monetary contraction that shifts aggregate demand from AD1 to AD3, then the short-run nonneutrality of money is represented by the movement from:A)A to BB)A to GC)A to CD)A to D29.(Exhibit: ADAS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, if there is an unexpected monetary contraction that shifts aggregate demand from AD1 to AD3, then the long-run neutrality of money is represented by the movement from:A)A to BB)A to GC)A to CD)A to D30.The Phillips curve shows a _ relationship between inflation and unemployment, and the short-run aggregate supply curve shows a _ relationship between the price level and output.A)positive; positiveB)positive; negativeC)negative; negativeD)negative; positive31.The relationship between short-run aggregate supply curves and Phillips curves is that there:A)is no relationship between short-run aggregate supply curves and Phillips curves.B)are several short-run aggregate supply curves for each Phillips curve.C)are several Phillips curves for each short-run aggregate supply curve.D)is exactly one Phillips curve corresponding to each short-run aggregate supply curve.32.The Phillips curve depends on all of the following forces except:A)the current exchange rate.B)expected inflation.C)the deviation of unemployment from its natural rate.D)supply shocks.33.According to the Phillips curve, other things being equal, inflation depends positively on:A)expected inflation.B)the unemployment rate.C)the rate of technological change.D)the quantities of capital and labor.34.The Phillips curve expresses a short-run link:A)among nominal variables.B)among real variables.C)among unexpected variables.D)between nominal and real variables.35.If the short-run aggregate supply curve is steep, the Phillips curve will be:A)flat.B)steep.C)backward-bending.D)unrelated to the slope of the short-run aggregate supply curve.36.Along a short-run aggregate supply curve, output is related to unexpected movements in the _. Along a Phillips curve, unemployment is related to unexpected movements in the _.A)price level; inflation rateB)inflation rate; price levelC)unemployment rate; price levelD)price level; level of output37.All of the following are ways that the modern Phillips curve differs from the relationship observed by A. W. Phillips in 1958 except that the modern Phillips curve:A)substitutes the output gap for unemployment.B)includes supply shocks.C)includes expected inflation.D)substitutes price inflation for wage inflation.38.The classical dichotomy breaks down for a Phillips curve, which shows the relationship between a nominal variable, _, and a real variable, _.A)output; pricesB)money; outputC)inflation; unemploymentD)unemployment; inflation39.Based on the Phillips curve, unexpected movements in inflation are related to _, and based on the short-run aggregate supply curve, unexpected movements in the price level are related to _.A)sticky wages; sticky pricesB)sticky prices; sticky wagesC)output; unemploymentD)unemployment; output40.The NAIRU is the:A)North American institutional rate of unemployment.B)natural aggregate investment return on utilization.C)nonaccelerating inflation rate of unemployment.D)normal American inelastic rate of unemployment.41.When adaptive expectations are used to model inflation expectations in the Phillips curve, then the natural rate of unemployment is called the _ rate of unemployment.A)structuralB)cyclicalC)short-run aggregate supplyD)nonaccelerating inflation42.If the equation for a countrys Phillips curve is p = 0.02 0.8(u 0.05), where p is the rate of inflation and u is the unemployment rate, what is the short-run inflation rate when unemployment is 4 percent (0.04)?A)above 2 percent (0.02)B)below 2 percent (0.02)C)2 percent (0.02)D)2 percent (0.02)43.The assumption of adaptive expectations for inflation means that people will form their expectations of inflation by:A)taking all information into account using the best economic model available.B)asking the opinions of experts.C)basing their opinions on recently observed inflation.D)flipping a coin.44.Inflation inertia is represented in the aggregate supplyaggregate demand model by continuing upward shifts in the:A)aggregate demand curve.B)short-run aggregate supply curve.C)long-run aggregate supply curve.D)aggregate demand and short-run aggregate supply curves.45.Inflation inertia refers to the idea that inflation:A)is always present in economies.B)keeps on going unless something acts to stop it.C)cannot be reduced unless unemployment is increased.D)can be generated by either demand-pull or cost-push forces.46.To illustrate inflation inertia in an aggregate demandaggregate supply model, the short-run aggregate supply curve shifts upward because of increases in _, and the aggregate demand curve shifts upward because of increases in _.A)the expected price level; the money supplyB)the money supply; the expected price levelC)output; the price levelD)the price level; output47.Demand-pull inflation is the result of:A)high aggregate demand.B)low aggregate demand.C)favorable supply shocks.D)adverse supply shocks.48.In the case of demand-pull inflation, other things being equal:A)both the inflation rate and the unemployment rate rise at the same time.B)the unemployment rate rises but the inflation rate falls.C)the inflation rate rises but the unemployment rate falls.D)both the inflation rate and the unemployment rate fall.49.Cost-push inflation is the result of:A)high aggregate demand.B)low aggregate demand.C)favorable supply shocks.D)adverse supply shocks.50.In the case of cost-push inflation, other things being equal:A)both the inflation rate and the unemployment rate rise at the same time.B)the unemployment rate rises but the inflation rate falls.C)the inflation rate rises but the unemployment rate falls.D)both the inflation rate and the unemployment rate fall.Use the following to answer questions 51-52:Exhibit: ADAS Shifts51.(Exhibit: ADAS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, a cost-push inflation would be represented by a shift from:A)AD1 to AD2B)AD1 to AD3C)AS1 to AS2D)AS1 to AS352.(Exhibit: ADAS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, a demand-pull inflation would be represented by a shift from:A)AD1 to AD2B)AD1 to AD3C)AS1 to AS2D)AS1 to AS353.In the 1960s, in the United States:A)both the inflation rate and the unemployment rate rose at the same time.B)the unemployment rate rose but the inflation rate fell.C)the inflation rate rose but the unemployment rate fell.D)both the inflation rate and the unemployment rate fell.54.The most prominent feature of the U.S. economy in the 1970s was:A)cost-push deflation.B)cost-push inflation.C)demand deflation.D)demand inflation.55.The most prominent feature of the U.S. economy in the 1980s was:A)cost-push inflation.B)cost-push deflation.C)demand-pull inflation.D)demand-pull deflation.56.The short-run Phillips curve:A)shifts upward if expected inflation increases.B)shifts upward if expected inflation decreases.C)shifts downward if expected inflation increases.D)is vertical.57.The Phillips curve analysis described in Chapter 14 implies that there is a negative tradeoff between inflation and unemployment in:A)both the short run and long run.B)in the short run only.C)in the long run only.D)in neither the short run nor the long run.58.The tradeoff between inflation and unemployment does not exist in the long run because people will adjust their expectations so that expected inflation:A)exceeds the inflation rate.B)equals the inflation rate.C)is below the inflation rate.D)equals the inflation rate of the previous year.59.Analysis of the short-run Phillips curve suggests that policymakers who want to reduce unemployment in the short run should _ aggregate demand at a cost of generating _ inflation.A)increase; higherB)increase; lowerC)decrease; higherD)decrease; lowerUse the following to answer questions 60-61:Short-run Phillips Curve60.(Exhibit: Short-Run Phillips Curve) As the short-run Phillips curve shifts from A to B to C to D, policymakers face:A)the same tradeoff between inflation and unemployment.B)a lower rate of inflation for any level of unemployment.C)a higher rate of inflation for any level of unemployment.D)higher than expected inflation rates and lower unemployment rates.61.(Exhibit: Short-Run Phillips Curve) As the short-run Phillips curve shifts from A to B to C to D:A)the expected rate of inflation is unchanged at every level of unemployment.B)there is a lower-