Podcast
Questions and Answers
What does a negative output gap of 5% in an economy indicate?
What does a negative output gap of 5% in an economy indicate?
- GDP is 5% below potential GDP (correct)
- Unemployment is 5% above the natural rate of unemployment
- Unemployment is 5% below the natural rate of unemployment
- GDP is 5% above potential GDP
In the years between 1970 and 1974, which year has the lowest output gap in absolute value?
In the years between 1970 and 1974, which year has the lowest output gap in absolute value?
- 1971 (correct)
- 1970
- 1973
- 1972
According to the interdependence principle, what is the tendency of economic variables?
According to the interdependence principle, what is the tendency of economic variables?
- Rise and fall in opposite directions
- Have low correlation
- Rise and fall together (correct)
- Have no influence on each other
What is a financial shock defined as?
What is a financial shock defined as?
If ChatGPT data can predict stock market prices with a 6-month delay, what type of indicator is ChatGPT data?
If ChatGPT data can predict stock market prices with a 6-month delay, what type of indicator is ChatGPT data?
In the IS-MP framework of the Fed model, what is expected to happen to the IS curve after a recession?
In the IS-MP framework of the Fed model, what is expected to happen to the IS curve after a recession?
According to the IS-MP model, what effect does an increase in real interest rates have on output and the output gap?
According to the IS-MP model, what effect does an increase in real interest rates have on output and the output gap?
Which event would be considered a spending shock according to the Fed model?
Which event would be considered a spending shock according to the Fed model?
What is used by the Fed model to determine the federal funds rate?
What is used by the Fed model to determine the federal funds rate?
What primary reason drives the government to increase spending during a recession?
What primary reason drives the government to increase spending during a recession?
Given an economy with an aggregate expenditure (AE) of $600 billion, if consumption (C) is four times the planned investment (I) and government purchases (G) and net exports (NX) total $150 billion together, what is the value of planned investment?
Given an economy with an aggregate expenditure (AE) of $600 billion, if consumption (C) is four times the planned investment (I) and government purchases (G) and net exports (NX) total $150 billion together, what is the value of planned investment?
Flashcards are hidden until you start studying
