This topic contains a solution. Click here to go to the answer

Author Question: If the economy is in a long-run equilibrium when the Federal Reserve decides that its inflation ... (Read 61 times)

tiffannnnyyyyyy

  • Hero Member
  • *****
  • Posts: 512
If the economy is in a long-run equilibrium when the Federal Reserve decides that its inflation target is too low and chooses to raise it, ________.
 
  A) it would likely conduct a tightening of monetary policy by raising the real interest rate for any given inflation rate
  B) it would likely conduct an easing of monetary policy by lowering the real interest rate for any given inflation rate
  C) it would likely conduct an easing of monetary policy where the real interest rate would increase due to the ensuing decrease in aggregate demand
  D) it would likely conduct a tightening of monetary policy where the real interest rate would increase due to the ensuing increase in aggregate demand
  E) none of the above

Question 2

Real business cycle theory was introduced by
 
  A) Milton Friedman and Robert Lucas.
  B) Milton Friedman and Anna Schwartz.
  C) Thomas Cooley and Gary Hansen.
  D) Finn Kydland and Edward Prescott.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

B

Answer to Question 2

D




tiffannnnyyyyyy

  • Member
  • Posts: 512
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


  • Member
  • Posts:
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

The average adult has about 21 square feet of skin.

For a complete list of videos, visit our video library