In the standard AS-AD framework, after a negative permanent demand shock at time , the economy approaches an equilibrium with

Earlier today, you saw that the federal funds rate in the United States is currently 4.5 percent (i.e., at the upper bound of the 4.25-4.5 percent target range). The bank rate in the United Kingdom is also 4.5 percent. The FOMC is meeting on Tuesday and Wednesday of the coming week and you expect the committee to drop the interest rate target by 0.5 percentage points. Based on this information you expect that ______ Select all that apply.

Suppose the Federal Reserve decreases interest rates from 4% to 3%, which shifts aggregate demand and increases short-run output to 2.0%. If there are no other shocks to the economy, and the resulting change in inflation is 5.0 percentage points, what is the value of the parameter

Consider a case were the growth rate of the money supply in the US is 5.7% per year and the growth rate of the money supply in the UK is 3.9% per year. Real GDP growth in the US is 2.3% per year while real GDP grows at a rate of 1.1% in the UK. In addition, the pound per dollar exchange rate is depreciating at a rate of 1.5% per year. You should assume that the inflation rate is determined by the quantity theory of the price level (and inflation) with constant velocity in each country. Calculate the annual percentage change of the real exchange rate (RER). Note: Include a (-) sign if the growth rate is negative. Round your answer to the nearest tenth of a percent.

In November 2020, the price level in the U.S. was . At the same date, the price level in the Eurozone was . One year later, the price levels were  and . During this 12-month period, the real exchange rate was constant. The nominal exchange rate (E) is reported in euros per dollar (i.e. how many euros do we need to purchase one dollar). Using the information above, calculate the rate of change of E during this time (in percent). Round your answer to the nearest tenth of a percent.

If a country is running a trade surplus, which of the following is true? Select all that apply.

You are a staff economist with the Federal Reserve. The chairman says to you, “We are seeing signs of inflation above our target rate, and I don’t think the Phillips curve is very steep. What should we do to bring the rate back to our target rate?” How do you respond? Answer:  “Because the Phillips curve is relatively flat, we need to [ANS1] interest rates [ANS2] in order to [ANS3] the investment-to-potential output ratio and hence short-run output. A flat Phillips curve requires a [ANS4] in short-run output in order to lower the inflation rate.”

Using the same numbers again, you also know that

What arguments exist for the following assertion?: Europeans committed genocide against the Native Americans.

What arguments exist for the following assertion?: Europeans did NOT commit genocide against the Native Americans.