In the new Keynesian model, expected inflation is a function of ________
A) expected future output gaps and markup shocks
B) current and past inflation
C) unanticipated aggregate demand shocks
D) expected growth of the money supply
A
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To be a member of the Internal Monetary Fund a nation must deposit funds based on
A) the need to loan money to developing nations. B) its national income. C) the amount of funds it wants to deposit. D) rules set up by the World Bank.
The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes
A) mean income < median income < mode income. B) mode income < median income < mean income. C) median income < mean income < mode income. D) mode income < mean income < median income.
When adjusting nominal GDP for price changes, it is preferable to use the GDP deflator rather than the consumer price index because
a. the GDP deflator is calculated for a narrow market basket of goods, approximating those items included in our measure of consumption expenditures. b. the GDP deflator calculates changes in the prices of items that more closely approximate those included in GDP. c. the GDP deflator is always less than the consumer price index, and therefore, it is a more stable index. d. the GDP deflator is the sum of the consumer price index and the wholesale price index.
The equilibrium of aggregate supply and aggregate demand represents the:
A. total of all goods and services produced in the major sectors of the economy. B. general price level of the economy with respect to goods and services households purchase. C. overall state of the national economy. D. All of these are true.