Which of the following is perhaps the greatest obstacle facing the Fed in discharging monetary policy?
A) the difficulties involved in regulating the complex structure of financial institutions
B) the problem of monetary policy lags
C) the problem of identifying a monetary measure that is closely linked to real GDP
D) the problem of coordinating monetary and fiscal policy
Ans: B) the problem of monetary policy lags
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Refer to the scenario above. If the economy is currently on F2 and produces Y3 level of output, a leftward shift of the labor demand curve with no change in productivity will cause output to ________
A) increase from Y3 to Y4 B) decline from Y3 to Y1 C) decline from Y3 to Y2 D) increase from Y3 to Y5
Along the short-run Phillips curve SRPC2 the natural unemployment rate is
A) 8 percent. B) 3 percent. C) 4 percent. D) 6 percent. E) an amount that can be determined from the figure but none of the above answers is correct.
The Gauss-Markov theorem for multiple regression states that the OLS estimator
A) has the smallest variance possible for any linear estimator. B) is BLUE if the Gauss-Markov conditions for multiple regression hold. C) is identical to the maximum likelihood estimator. D) is the most commonly used estimator.
The Embargo Act (1807):
a. partially opened up trade with some specific prohibitions. b. successfully forced England and France to ease their harassment of neutral ships. c. reduced U.S. imports, but increased U.S. exports. d. remained in effect until after the Civil War. e. None of the above are correct.