(2 points)Please consider the excerpt from the Wall Street Journal on November 3, 2023.

In the AS-AD framework, the link between productivity and inflation can best be characterized in which of the follow ways?

Group of answer choices

Increased productivity pushes SRAS further to the left.

Incerased productivity pushes SRAS to the right.

Increased productivity pushed AD to the right.

Increased productivity pushed AD to the left.

Increased productivity pushed LRAS to the right.

Increased productivity pushed LRAS to the left.

Question 32 2pts

(2 points)Which of the statements regarding the graph below are true.

I. This graph fuels concern about deflation.

II. This graph captures the central bank's program of quantitative easing.

III. This graph captures the government's growing debt.

IV. This graph reflects the fiscal policy of the time.

Group of answer choices

I.

II

III

I and II

I and III

II and III

IV

III and IV

II and IV

I and IV

Question 33 2pts

(2 points)The United States Federal Reserve _________________________.

Group of answer choices

sets the market interest rate

sets the Fed Funds target rate

is not charged with worrying about inflation

is in charge of issuing treasury securities to fund the government debt

set tax rates

Question 34 2pts

(2 points)All else equal, the lockdowns - both state-mandated and voluntary - during the pandemic would work towards __________ the fiscal multiplier.

Group of answer choices

increasing

decreasing

too little information to answer

Question 35 2pts

(2 points)If the Fed's policy is contractionary, it will ______________________________.

Group of answer choices

use open market operations to buy Treasury bills

use open market operations to sell Treasury bills

lower the discount rate

lower the reserve requirement

Question 36 2pts

(2 points)We have now seen negative nominal interest rates for both government securities and corporate securities. What can contribute to the existence of negative nominal interest rates?

Group of answer choices

high expected inflation and flight to safety

expected deflation and flight to safety

contractionary monetary policy

contractionary fiscal policy

Question 37 2pts

Consider the WSJ news alert from October 26, 2023:

Based on this description, choose the most accurate sentence.

Group of answer choices

The AD curve shifted to the right with a strong increase in C.

The SRAS shifted to the left, causing inflation.

The AD curve shifted to the right.

The Federal Reserve is now less likely to continue increasing interest rates.

Question 38 2pts

(2 points)Which monetary policy tool do central banks now turn to when target rates approach zero?

Group of answer choices

raising reserve requirements

raising the discount rate

quantitative easing

issuing government bonds

Question 39 2pts

(2 points)A near zero interest rate makes expansionary ________________ policy less costly.

Group of answer choices

monetary

fiscal

none of the above

Question 40 2pts

(2 points)If a stimulus package increases unemployment benefits by $600 per week and the stimulus is expected to have a multiplier of 1.5, what is expected final impact on GDP of one of these payments?

Group of answer choices

$400

$600

$900

Not enough information to answer.

$1800

Question 41 2pts

(2 points)To understand structural unemployment in an economy, the __________ must also be considered in addition to the unemployment rate.

Group of answer choices

frictional unemployment

cyclical unemployment

labor participation rate

inflation rate

interest rate

exchange rate

the debt level