In the New Keynesian model, if there is a decrease in anticipated future total factor productivity, then
A) there should be no change in monetary or fiscal policy.
B) the central bank's interest rate target should be increased.
C) government spending should fall, and the central bank's interest rate target should rise.
D) government spending should increase.
D
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One effect of immigration is to:
A. Decrease a nation's total output and productive capacity B. Make capital resources less scarce relative to labor C. Decrease economic efficiency on a worldwide basis D. Increase the wage bill in a nation experiencing immigration if the demand for labor is elastic
What most accurately describes what happened to earnings in the US between 1914 and 1920?
a. Both nominal and real earnings increased substantially. b. Nominal and real earnings dropped significantly as the World War I triggered a recession. c. Nominal earnings increased slightly, but real wages decreased because of the large inflation. d. A period of deflation led real earnings to increase even though nominal earnings had decreased slightly.
The aggregate supply curve shows how much the nation's businesses are willing and able to produce at each price level
a. True b. False Indicate whether the statement is true or false
One source of the supply of dollars in the world is
A) the purchase of U.S. exports by foreign residents. B) the sale of U.S. domestic assets to foreigner residents. C) U.S. imports of foreign merchandise. D) U.S. sales of gold to foreigner residents.