Can you please check my answers and if I am wrong correct me.
Thank you!
A. In today's interconnected world, many central banks communicate regularly and frequently with the public about the state of the economy, the economic outlook, and the likely future course of monetary policy. Communication about the likely future course of monetary policy is known as "forward guidance.". If the central bank increases the reserve ratio, as the market has perfectly expected, which of the following will surely happen?
The short run economic output will be deviating from its potential output
The prevailing price level of goods and services in that country will fall
The level of potential output will be shifting to the left
None of the following will happen for sure
B. What actually helps to determine the slope of short-term aggregate supply curve?
The rate at which the level of technology increases
The rate at which the country’s capital stock is depreciating
How responsive is the actual short run level of output to the deviation of actual price level of the economy from its expected price level
How sensitive is the economy towards changes of nominal interest rate
C. During a recession the economy experiences:
rising employment and income.
rising employment and falling income.
rising income and falling employment.
falling employment and income.
D. Most economists believe that in the short run
real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend.
real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend.
real and nominal variables are highly intertwined but that money cannot move real GDP away from its long- run trend.
real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.
E. The Central Bank of Wiknam increases the money supply at the same time the Parliament of Wiknam passes a new investment tax credit. Which of these policies shift aggregate demand to the right?
both the money supply increase and the investment tax credit
the money supply increase but not the investment tax credit
the investment tax credit but not the money supply increase
neither the investment tax credit nor the money supply increase
F. The long-run aggregate supply curve would shift right if the government were to
reduce the minimum-wage.
make unemployment benefits more generous.
raise taxes on investment spending.
All of the above are correct.
G. Sticky nominal wages can result in
lower profits for firms when the price level is lower than expected.
a decrease in real wages when the price level is lower than expected.
a short-run aggregate-supply curve that is vertical.
a long-run aggregate-supply curve that is upward-sloping.
H. In which case can we be sure aggregate demand shifts left overall?
people want to save more for retirement and the Fed increases the money supply.
people want to save more for retirement and the Fed decreases the money supply.
people want to save less for retirement and the Fed increases the money supply.
people want to save less for retirement and the Fed decreases the money supply.
I. In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when the price level increases,
the real value of money decreases; in turn, the real value of the dollar increases in foreign exchange markets, which decreases net exports.
the real value of money decreases; in turn, interest rates increase, which decreases net exports.
households increase their holdings of money; in turn, interest rates decrease, which reduces spending on investment goods.
households increase their holdings of money; in turn, interest rates increase, which reduces spending on investment goods.
J. Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this
it is only necessary that long-run aggregate supply shifts right over time.
it is only necessary that aggregate demand shifts right over time.
both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther.
None of the above cases would produce rising prices and growing real GDP over time.
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